For a while now, Microsoft and Intel have shared a vision of the future of computing that hangs on the Ultra Mobile PC (UMPC), the smaller-than-a-notebook PCs with touch-screens.

So far, though, UMPCs haven’t exactly taken the industry by storm.

Medion's Rim 1000, may be the cheapest UMPC so far to have a full keyboard built into it, but it's unlikely to persuade many more people to switch.

It comes with Windows Vista Home Premium, which is desirable for its new interface and accurate hand-writing recognition. The device weighs just 740g and is designed to be held like a portable gaming console. The cursor in Windows can be controlled by the thumb-pad (which is as easy to use as a Sony PSP's joystick) or by touching the screen, although the touch-sensitivity isn’t very accurate.

A Via 1GHz C7-M processor powers the Rim 1000, and while this may sound like an impressive speed, it's actually too weak for Vista to function well, particularly when combined with only 768MB of memory (the 30GB hard disk is adequate, however). The computer was incapable of playing back basic video files without stuttering – a huge flaw if this UMPC is designed to be chosen over a small notebook or portable media player.

The fancy graphics effects in Vista such as 3D-flip and window transparency can’t be used either because there isn’t enough horse power. We can't help thinking that Vista wasn't a good choice, and that a less strenuous operating system like Windows XP or even Linux may have been a better option.

On the other hand, the 6.5in screen Medion has chosen outclasses every other UMPC in this price range. Thanks to several updated technologies, it’s brighter and more vivid than other UMPCs. The only problem with it is that the resolu tion is just 800x480 pixels, which is too small for many programs to function properly, although such a small screen is typical of low-end UMPCs.

The unit slides in half to reveal a keyboard made of tiny squares that aren’t suitable for large fingers. There’s a large and pointless 5cm gap that splits the keyboard in two, making it difficult to use, and what’s more, the sliding mechanism on our device became loose after just one week of use.

It achieved a battery life of three hours in an intensive test, and just over four hours when doing basic word processing. This is the longest hand-held computer battery life we’ve seen – thrashing a £2,000 Sony UMPC that barely managed 2 and a half hours, and making the Medion ideal for longer journeys.

The Rim 1000 is also one of the most feature-rich UMPCs, including Wifi, two USB ports and a headphone jack. A pinhole webcam and microphone sit just above the screen for video-chats, and photos can be edited on the go thanks to an SD memory card reader. Apart from this, we aren’t convinced there are many uses for such a UMPC.

The keyboard on the Rim 1000 is a gimmick and its performance in memory and processor hungry Vista is terrible. Despite this, it’s still impressive to see so many features in such a small box.

Vista compatible: Yes