fujitsu makes a pretty little ultra-portable notebook they call the lifebook. a more affordable choice would be one of sotec's 1" thin portables which run celerons & are priced at $700-900.
I'd also like a very small laptop. It would be cool if some company would make a nice little one for a small price. Maybe just a Celeron 1.2 with 256 Ram to put linux on.....
I saw one of these at Future Shop and they actually seem pretty nice. At $1500 Canadian it's a bit more than I'd like to pay for a 1600+, but it's almost worth it for the portability..