As seen on Engadget, NVIDIA has gutted an HP Mini 1000 and replaced its hardware with NVIDIA Tegra components as well as a stock install of Windows CE.

… like other Tegra devices we’ve seen, this thing could easily have HDMI, run fluid 3D graphics, and generally make the world a better place at a stupid cheap price. We were also shown a Tegra single-board computer measuring no larger than a single small-outline DIMM like you’d find in a modern laptop, proof that this action can be scaled way down depending on the kinds of devices manufacturers are looking to make.

Could this mark the possible return of the “Handheld PCs” running Windows Compact Edition? Engadget thinks we might be able to look forward to even more inexpensive netbooks.