My first reaction to this is, if the "small/cheap" requirement is
actually "small enough", how about something like a dreamplug (or any of
the other multiple "plug computers" that are surfacing out there?

$149, and it runs linux, has built in wifi, AND Bluetooth.    Woof.

http://technabob.com/blog/2011/02/03/dreamplug-mini-power-plug-computer/

If you need more storage than the built in ram, you could easily pop in
a usb stick I suppose.

-kcb


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