The iTouchless Digital Camera Watch with 16 color LCD can take digital photos at 320x240 or 160x120 pixels resolution. (Our bet is the 320x240 mode is interpolated.) It can store 36 pictures on its internal 2MB RAM memory.
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I'm not sure I'll be replacing my Casio WQV-3 with this, although I like the idea of a color screen and the larger image resolution.