Apple just announced the Mac Mini. This is it:

It's got a CD-RW/DVD drive, DVI and VGA ports, plus the standard assortment of USB 2.0, Firewire and network connections. $499 for a 40GB drive and 1.25GHz G4, $599 for 80GB and 1.42GHz. As for the size, the box it ships in is smaller than the standard iPod box. It's 6.5" square on top and 2" tall. Hello, dedicated media center.