At last years CES Pepper introduced their first Linux powered Webpad.

The new and improved Pepper Pad Plus features a new battery with more than 60 percent greater capacity, Wi-Fi 802.11g, a 30GB hard disk and Bluetooth 2.0.
On the software side the SIP-based Internet telephony (VoIP), Windows Media 9 Series audio and video and Universal Plug and Play (UPnP), which enables the Pad to stream music, photos and videos from other UPnP devices and PCs. The Pepper Pad has an SVGA TFT LCD screen with an 800 X 600 resolution and resistive touch screen. The system is based on a 624-MHz Intel PXA270 application processor, Intel 2700G media processor and 256 MB of SDRAM.
The new Pepper Pad Plus will be available in the second quarter of 2006.
More details on the Pepper site.
The current Pepper Pad sells for $799.99 (after $50 mail-in rebate) on Amazon.com.

The Nokia 770 Internet Tablet is for sure competing with the Pepper Pad. Depending what you want from a Web Pad they cater to different customers. The Pepper Pad with its hard-drive is pretty much a full Linux PC.
On the other hand the Nokia 770 is more compact and half as expensive.