Kogan is going to release it's first Android based handset, the Agora. It's a candybar type phone, with a keyboard and also a 2.5" capacitive touch-screen.
There are going to be 2 versions: the standard version will cost AU$299 and a pro version which will contain a 2MP Camera, Wi-fi and GPS.
The device will have 256MB rom and 128MB ram, a MicroSD slot (not sure about SDHC support though).
And a 624MHz CPU (make unknown).

Highlights
2.5-inch TFT-LCD flat touch-sensitive screen.
Integrated QWERTY keyboard.
High-speed 3G network connection.
One-Touch Google Search ™.
Easy Web Browsing.
Easy-to-use email with attachment support for images, videos, music and documents.
Customisable Home Screen with instant Email, text message and IM notifications.
Instant access to mobile Internet services (Gmail ™, YouTube ™, Google Talk ™, Google Calendar ™, Google Maps ™).
Music Player.
Bluetooth® 2.0 with Enhanced Data Rate
microSD™ expansion slot for all your storage needs.
Wi-Fi network access.
GPS navigation capability.
2.0 megapixel camera.

In red are the pro only features

To be released: 29th January 2009

As far as I could see, screen resolution is 320x240

320x240 thats what I know to.

This is going to be pretty hard step for Android, as I guess 70% of the apps look weird or don't work on that resolution. :/

Regards,
plusminus

Yep.

I must admit that usually my UIs that look good on 480x320, already look rather weird on 320x480...

But I think there's not only a problem with different layouts. If there is for example 3.5, 3.2 or 3.0 inch display for 480x320, that means different pixels/inch values and buttons/ text size etc. that might be ok at 3.5 can be too small at 3.0