OQO finally launched its long-expected handheld-sized PC this week. Called the Model 01 ultra personal computer, the new device purports to offer all the power of a full-sized desktop computer in a PDA form factor.

Model 01 runs Windows XP rather than any of the traditional handheld operating systems, such as Windows Mobile, the Palm OS, Symbian or Linux. Remarkably, the device weighs a mere 14 ounces—twice your average handheld but far less than a laptop—and measures only 4.9 x 3.4 x 0.9 inches. It can literally fit in a shirt pocket.

One benefit of Model 01 includes the ability to access all your data without synching, as you would with a PDA, in its native format. It can also serve as a desktop computer through a docking cable (more on that bellow).

OQO VP of Marketing Elizabeth Bastiaanse told PDAStreet the Model 01 is aimed at anyone, company or individual, who values Windows portability above all else. Potential customers also includes enterprises and industries (healthcare, insurance, retail) that want to mobilize a specific application (e.g sales force, patient care). The expectation is that organizations will deploy Model 01 instead of heavier and bulkier tablet or laptop PCs.

For its part, Microsoft is happy to have yet another form factor available for its Windows operating system. "With the OQO model 01, OQO is forging new ground for the mobile experience," commented Jim Allchin, the software giant's VP of Platforms.

He went on to say that "business professionals get the convenience of a full Windows XP Professional implementation in a very portable device. I'm impressed not only with OQO's technical achievement, but with their creative vision, which addresses a real customer need."

What's Inside
The unit runs on a 1GHz Transmeta Crusoe processor with 20GB hard drive and 256MB of RAM. Its 800 x 480 pixel resolution 5-inch touchscreen is supported by 3D accelerated graphics with 8MB video RAM. For input, you get a thumb-keyboard with mouse buttons, a TrackStik (mini joystick), a thumbwheel, and a stylus.

In terms of connectivity, the OQC offers 802.11b Wi-Fi and Bluetooth wireless as well as FireWire and USB. There is also a 3.5 mm stereo headphone jack for listening to audio.

A removable lithium polymer battery powers Model 01 for up to three hours. Extra batteries, normally $149, are on sale now for $99.

Bundled with the PC is a docking cable that can connect to a monitor and provide a display resolution up to 1280 x 1024. The cable has extra USB and FireWire ports plus Ethernet, DC power, and audio out connectors.

The tiny PC sells for a hefty $1900 with a Windows XP Pro version going for $200 more. OQO will preinstall Microsoft Office Small Business Edition for an additional $300.