According to the Wall Street Journal:
The new device will have a touchscreen and keypad and will use Microsoft Corp.’s Windows Mobile 6.1 operating system, say people briefed on the plan. It will be able to send and receive emails, and access the Internet.(source)
The phone is the latest version of H-P’s iPaq devices. H-P, which has been selling iPaq-branded devices since it acquired personal-computer maker Compaq Computer Corp. in 2002, primarily focused earlier iPaqs on businesses and typically didn’t sell them through retail stores.