I saw a post over at JKKMobile that linked back to a post in the forums at UMPC Portal, that Gigabyte had a new UMPC called the M704 on their Chinese language global website. Now, if I track back the URLs I can't find it anywhere. It's not on their English language website and it's not at the URL posted in the reports. A search on their Chinese language website under UMPCs only lists the U60, which has been out for over six months. So this news is all based what he said she said that they saw...So this is the specs as they were posted on UMPC Portal:
CPU: VIA Esther Mobile Technology VIA Esther ULV C7-M (1.2GHz, 400/800MHz, 128KB/128KB L2) Nano BGA2 90nm, 3.5W~7.5W TDP OS: Windows Vista Premiem
Chipset: VIA VX-700 Memory: DDR2-533, 768MB (default is 768 and it is max, same as U60)
LCD: (pay attention!): 7” TFT-LCD WXGA, 1024x600, with LED backlight
HDD: 1.8" with 5400 RPM,40 or 60 GB
ODD: external optical device supported(external boot?)
CAM: 1.3M pixel CMOS web-cam
Wireless: 802.11 b/g
other Perephireal: Card reader:SD/MMC/SD-IO, USB 2.0: 2 ports, VGA output, DC in connector, stylus, expension port(including 10/100M ethernet jack), Battery 2 cells,3900mAh/cell, 3 hrs
Dimension 190(W)x120.8(D)x30.3(H)mm
Weight 780g
There are little comments inserted in the list, so this is not a direct cut and paste from Gigabyte's website. JKKMobile also has a picture:

This UMPC is very reminiscent of the Gigabyte U60, the noticeable differences being that the processor speed has been upgraded, it runs Windows Vista, the screen is 0.5" larger, the integrated web cam is much more robust at 1.3 mega pixels, it's 40g heavier, 2 mm thicker and it includes a card reader.