Dell rocked the PDA world when it released the Axim X5 Pocket PC a little over a year ago. The Axim X5 proved that a Pocket PC didn't have to be expensive to be jam packed with features. The company, which hadn't had a PDA option before, quickly became one of the best selling handheld vendors. It is now number two in Pocket PC sales behind Hewlett-Packard and the vaunted iPAQ line, while firmly entrenched in the top five overall in the PDA market.

The Axim X5 came in both entry-level and high-end configurations with dual-slot (Compact Flash and Secure Digital) expansion, a 65,000 color screen and Intel XScale processors (300MHz in entry-level model and 400MHz in the high-end model). The more expensive Axim came with 64MB of RAM and a docking station, while the less expensive one has 32MB of RAM and a USB sync cable.

While these features were impressive, they were housed in a bulky and not very attractive package. The lack of any wireless technology also proved to be a shortcoming, as a number of PDAs came out over the last year that feature either Bluetooth or Wi-Fi and even a combination of the two.

Dell solved most of these issues with the release of the Axim X3 series towards the end of last year. While the Axim X3 won't win any prizes as the most handsome Pocket PC in the world, at 3.0 x 4.6 x 0.6 inches it is much slimmer and more comfortable to hold than the previous Axim series. In fact, in sort of a basic utilitarian sort of way, it is kind of attractive.

This new series comes in three models. Like with the Axim X5 handhelds, Dell has bundled a lot of features for a good price. One of the three models in the X3 series is the first Dell Pocket PC to include built-in 802.11b Wi-Fi. The Wi-Fi model, which is the one we're reviewing, is called the Axim X3i. It sells for $349.

The Axim 3Xi runs on Windows Mobile 2003 for Pocket PC and a 400MHz Intel Xscale processor. As for memory, the unit boasts 64 MB of RAM, all user available. There is also a 35MB file store, which acts like an internal memory card where you can store files. Overall, this is an excellent amount of memory for a Pocket PC.

Seven buttons help you navigate the features of the Axim X3i. The power button rest top and center just above the handheld's display. It also serves as a power indicator, turning green when the device is fully charged and orange when it is in the middle of charging. There are four application buttons underneath the display. These are used for launching applications, such as the Calendar, Inbox, Today, and Contacts. Of course you can program any application you like into thethese buttons. Next to these buttons, on the left, is the voice recorder button. When pressed, it launches the voice recorder application for taking take voice memos. A similar button at the bottom left of the Pocket PC allows you to turn on and off the built-in Wi-Fi.

Between the four application buttons sits a five-way D-Pad for navigation. Another navigation tool is a jog wheel, which is on the left side of the unit just bellow a headphone jack. Including both a D-Pad and a jog wheel is a nice touch.

At 5 ounces, the Axim X3i is 28% lighter than its predecessor, and is also 17% thinner. The Axim X3i features the standard 3.5-inch, 240x320 pixel resolution and 65K color Pocket PC display. The display worked very well inside and was pretty good outdoors too. While most Pocket PC models still use this resolution display, many Palm OS devices now integrate high resolution 320x320 pixel screens and go has high as 320x480 in PalmOne's Tungsten T3 and certain Sony models. The only Pocket PC that supports a higher resolution is the Toshiba e805, which uses proprietary technology to run at VGA (640x480) with a small number of applications. We expect the next version of Windows Mobile to support displays greater than 240x320.

Another nice feature of the Axim X3i is the use of removable batteries. In fact, the device's cradle, which is one of the coolest ones we've seen, has a slot to charge an extra battery. Having more than one battery handy is great when your using a Wi-Fi enabled PDA like the Axim X3i, as Wi-Fi is a notorious battery hog.

While the Pocket PC comes standard with a 950 mAh Lithium Ion battery, an optional high-capacity 1800 mAh battery is available for $99. We highly recommend getting the extra 1800 mAH battery, as the device only worked for about 3.5 hours on a single charge with average Wi-Fi use. With the higher capacity battery you would double that time.

In terms of Wi-Fi, the Axim's setup utility made getting up on our Wi-Fi network really easy. In just a few seconds after turning on the wireless function, I was up on the Internet. With Wi-Fi, you can access the Internet from a hot spot, as many stores and cafes, such as Borders, Starbucks and even some McDonalds, as well as schools and many other places are implementing them. You can even get on your work or home network if there are access points installed. The use of an external nub-like antenna allowed the Axim 3Xi to work at a good range away from our access point. Often with PDAs that have internal antennas, the range is less than desirable.

The antenna, which blinks a blue light when it is in use, sits on the top right of the Pocket PC, just between the stylus and a Secure Digital slot for memory and peripheral expansion. Just bellow this on the front of the Axim X3i is a built-in microphone, which you use when taking voice memos. To the front left of the Secure Digital slot is the Pocket PC's infrared port, a mainstay of PDAs going back to the very beginning.

We were disappointed that the Axim X3i didn't come with Bluetooth wireless networking, which would, for instance, allow users to surf the Web and check email with a Bluetooth phone when a hot spot isn't handy. It seems that Dell was planning to include Wi-Fi with the device but decided against it. Just Recently, a Bluetooth version of the Axim X3i Pocket PC was approved by the Federal Communications Commission (FCC). The price and release date for these device haven't been made available.

In terms of multimedia, you can play MP3 and Windows Media files via Windows Media Player for Pocket PC. A basic speaker is on the back of the unit. You can also view pictures via a bundled image viewer.

Other applications come standard with Windows Mobile 2003, These include the Pocket editions of Outlook, Word, Excel, Internet Explorer, MSN Messenger, and the aforementioned Windows Media Player. An application called Switched Bar that isn't a part of Windows Mobile lets you view a list of all the applications currently running, so you can go from one to the other or shut them down.

Other than a lack of integrated Bluetooth, the Axim X3i models match up nicely, price and feature wise, to HP's current and far more extensive line-up, including the iPAQ 4000 series. It offers a lot for the price and should put pressure on the industry to drop prices like the original Axim's did before. It's a good choice for budget conscious consumers and businesses.