"Here's some info from our product brand manager:
There was a lot of confusion regarding this product last week. In a nutshell:
No, Dell isn't re-entering the MP3 market. The situation is that one of our vendors put together a prototype of a handheld that interacted with Latitude laptops.
The prototype included Dell's logo - however, the Latitude team still hasn't decided whether they want to proceed or not. (In other words, the vendor was totally out of line to release any information to a 3rd party source such as engadget. They were "shopping" the idea to Dell and took things a little too far.)
The actual device is not really an MP3 player - its more of a portable device that would allow people to download their calendar and contact info to a handheld out of their Latitude computer.
So, if you get questions about this, reassure people that at this time the device shown is not something on our roadmaps but as usual, Dell will continue to evaluate new technologies."