The first thing you might wonder is why do they call this phone an Android. Well, Android is a software platform for mobile phones and other devices. Google and a slew of other companies, including Intel, Motorola and Qualcomm, developed the platform, which is based on a Linux operating system. Android includes a browser similar to Safari, Apple computers' browser; a media support platform for handling audio, video and still pictures and a GPS navigation system. The Android platform is open source, which means it can run 3rd party applications. For example, a developer will be offering GoCart, a program that scans a barcode with the phone's camera. After scanning the product, the program finds comparable prices of that product at nearby stores.
Other features of the G1 phone include: touch screen platform; 3 MP camera with auto-focus; customizable screen; QWERTY keyboard; Google applications such as maps, instant messaging, calendar, G-mail and YouTube; Google search, video playback, 3G network and WiFi access and access to Android Market, where you can get those nifty applications.
The G1 phone comes out in a month (Oct. 22). It will sell for $179 with a two-year contract from T-Mobile. The G1 phone uses 3G networking in major metro areas and G1 for areas outside the 3G service. Both services offer different capabilities. More info here.