The screen is definitely different. It's flush, and probably tougher than the 800w (since it is more exposed, supposedly they really torture tested it).
There's rumors that the original 850 is what Jon Rubenstein shot down when he started at Palm, and that the new 850 was ODM'd by HTC, hence the HTC touchs (beefier battery, separate power button) and the random Palm touches (ringer switch, etc).
Between the two, the 850 is probably a harbinger of what Palm aims to look like going forwards.
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