256MB of on-board storage, that really does add something to the PDA realm for us Palm users. With Pocket PC kicking Palm’s butt all over the PDA market, hopefully having innovations like this will help Palm to make a comeback in some limited way.

Besides the added memory, the company’s new Tungsten T5 handheld comes with support for Bluetooth, has a 320 x 480 color display, palmOne said in a statement. The device also comes with palmOne’s File Transfer application, which it just released, that enables dragging and dropping files and folders between desktop computers and the handheld. As with its previous handhelds, the T5 comes with DataViz’s Documents To Go to read and edit common office files.