A Palm press-release has leaked briefly describing the new device Palm is supposed to present in a couple of hours at the D: All Things Digital conference.

Update:
Palm Foleo officially announced with Photos
Video of Palm Foleo
Foleo Versus HTC Shift and Flybook V5

The new Palm device is supposed to be called Foleo. It would feature a screen and full size keyboard and work together with your smartphone. It supposed to run Linux and sell for $499. The source press-release is a bit short and could be all fake.
On the other hand Palm already registered the Foleo name back in 2005 and also filed a patent describing device that can be folded.
TreoCentral has a in-depth analyses of the possible new Foleo device. The press-release also leaked on a TreoCentral discussion thread (via Gizmodo.). Palm will present the new device at 11:30am PCT.