http://kotaku.com/gaming/rumor/psp-slim-details-revealed-267108.php

Includes:

Smaller screen but sharper picture.

Due to the new screen, battery life is up to 4 times longer.

New UMD drive is faster, less load times.

Different D-pad and buttons to seem more like PS3 pad/buttons.

8GB internal flash drive.

May or may not be a built-in camera depending on price issues - probably no camera.

Trying to get it to under $170.

Still a "rumor", to be revealed officially at E3.

It would be nice if this is true that they offer both packages, seeing as most of them features won't be useful to alot of people and it would probably drive up the price again.

My original thoughts were that they would make a longer lasting battery and a quicker UMD drive and make the whole design slightly smaller.  The smaller screen would be okay, as long as it isn't too much smaller.  Currently the PSP's screen is 4.3 inches diagonal.  I reckon they can't make it much smaller than 4 inches or they will be approaching DS screen sized proportions which is 3 inches.

I'd be surprised if they included an 8GB flash drive with it, maybe 4GB if an internal flash drive at all.

And the camera will probably be a no no.

Anyway, if they are trying to bring the new unit in under $170, then I reckon they will have to reduce the original PSP by a good $40-$50 to compensate the changes and flash drive.  Although this would be a great move to shift all those original PSP's.

Imagine being able to pick up a PSP for $120 or as I am in the UK....£99 

Wow. That would be a pretty huge change to the PSP. I was hoping they wouldn't change the screen size. Hopefully it isn't noticeable. I think a faster refresh rate for the screen would do good. Watching movies that have a lot of quick/fast action on the PSP screen isn't one of it's strong points.

I would potentially think of upgrading, but I would probably keep my old PSP for the custom firmware.

I for one do hope they make the screen size smaller. The only reason not to is for UMD movies, but I really don't care about those. A sleeker smaller system with greatly improved battery life could really give it a boost.

that would be cool and when is the E3

around July 11th I think

I suspect some PSP games will have an increased graphics option, to take advantage of the longer battery life.

I think that I would certainly consider picking one up, although if it only has 4GB of flash memory I would not be so sure as I already have a 4GB memory stick. My main problem would be that I would have to get all my accesories again, by if they keep the screen as beautiful as it is, and make the d-pad better, I will be a very happy man.

Although I what I really want is Syphon Filter Logan's Shadow

I googled "E3 2007" and got to the official site saying it'll be on the 11-13.06. Weird, because I read somewhere that it'd be in August.

Hopefully we'll get lots of new information, because the last few months have been relatively slow. It would be about time for the reported resource shift from the HD consoles to the Wii to start manifesting itself in the amount of upcoming games.