Take a look at the decTop. Its a small computer weighing three pounds that can run Windows CE or linux. It has 128mb of memory and 10GB for storage. With four USB ports you could easily add a wireless usb stick for network connectivity and do some cool things. I came across this on LifeHacker and my mind is full of ideas for it. Plus at $100 its not to bad of a price.
Disclaimer The opinions expressed herein are my own personal opinions and do not represent my employer's view in any way.