Tired of waiting for Sony to make their own PSP phone, a hacker created his own functional prototype. By gutting out the UMD drive from the PSP, he made room for a fancy touch screen phone. It's impressive, although some may complain that this is nothing more than a fancy piecemeal job, as there's no real integration between the PSP gaming compartment and the phone itself.
[Thanks, NukeAssault! Via Engadget