Found some insider information over at Gizmodo
I saw and played with the VAIO Pocket yesterday. The navigation is passable at best. Those bumps on the right of the screen rapidly open and close menus as you run your finger across them, then if you can get it to land on the selection you want, you press down on the tiny buttons--yes those bumps are little, rubber-coated buttons. The screen is nice and is the best thing going for it. It won't play video, but you can use it to view digital photos. That big bump you see extending from the top and bottom on the right side is the non-replaceable rechargeable battery. It puts all the weight of the unit at that one end. It's like if you took a D-cell battery and attached it to an iPod--not exactly pocket-friendly. It includes a charging dock, which you absolutely need to charge it according to the rep I spoke with--there's no way to connect a cable directly to it for charging. They also showed off a prototype PVP that's identical to the Pocket but slightly larger that will wirelessly connect to your desktop for transfering video, and then you can wirelessly send the video to your TV.