That bastion of reliability, the Wall Street Journal, has confirmed that Dell is indeed working on a smartphone. Apparently there will be at least 2 models, one with a full touch screen and one with a sliding keyboard.
Both Android and Windows Mobile are still in the running, and it is not known which one Dell chose to go with.
Apparently Dell is planning to leverage their purchase of Zing, a media syncing company they bought last year for their project.
Read more at WSJ here.