Sony Cybershot DSC-T2 Has 4GB of Memory On Board
The Cyber-shot DSC-T2 is the latest in Sony's line of point-and-shoots, made most notable by the inclusion of four gigabytes of flash memory built right inside. (You can still use Memory Stick Pro Duo cards to expand it should you need to, but the 1,300 or so 8-megapixel photographs that can be snapped will likely be enough for most people. I wonder if we can expect similar upgrades of built-in memory from other vendors soon.
The DSC-T2 will be out in December in a variety of colors for $350.
Sony Cyber-shot DSC-T2: Memory cards? Who needs memory cards? [Crave.CNET.com]

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I was a fan of Sony cameras - my DSC-W70 took some good photos - but their abysmal customer service mean that I won't be giving them any more of my money.
The backlight on my W70's display died while in Cambodia - presumably due to condensation in the high humidity. Despite the camera being less than 1 year old, Sony claim that the warranty is void because of 'physical damage' to the camera - namely water damage from condensation. I'm now looking for a better option for my next camera.
I do like the idea of a usable amount of memory built-in to a camera - if only another manufacturer would follow suit...