Yes, I work for Sony and have had the opportunity to play with this device. It is very cool and the styling is fantastic. I was playing with the 40GB version (I am not sure if the actual unit will ship with the same amount of storage). It is slightly wider than an iPod mini but at the same time slightly thinner and sleeker looking to me.
While this is very interesting if true, what immediately raises a red flag with us is that the Sony employee says it has a 40GB harddrive, but is smaller than an iPod Mini. Unless Sony has drive technology that no one else has, it seems really unlikely that Sony could cram 40GB into a Mini-sized space. It's our guess that it's really a 4GB drive, rather than a 40GB.