At CES last week, Celio demonstrated its Redfly smartphone companion working with T-Mobile's G1, the first Google Android-run smartphone on the market.

Currently available for Windows Mobile handsets, Redfly is essentially a dumb-terminal that turns smartphone into a small notebook computer. One version of the device measures 9 x 6 x 0.1 inches and weighs 2.0 pounds. A newer edition, called the Redfly C7, is smaller with a more energy efficient seven-inch screen

Users connect their smartphones to Redfly via Bluetooth or USB.

Below you'll find Celio's proof-of-concept video showing the Android operating system on a Redfly. Celio expects speed and stability to improve with further development. In addition, according to Celio:

The Android device’s output resolution is changed to 800×480 then video output is routed to the REDFLYs 8-inch screen. Redfly also allows the use of its built-in keyboard and touchpad to control the Android device..

Celio did not say when Android compatibility for the device would become available to the general public. It plans to offer progress updates, though.

If concept behind Redfly sounds familiar, it should. Back in 2007, Palm killed a similar-sounding product, called the Foleo, before it even shipped. The laptop-like 2.5-pound Foleo, with a 10-inch screen and a full-size keyboard, was to serve as the inaugural device in a new category of product for Palm called Mobile Companions.

Foleo’s main purpose was to allow users to view and edit e-mail and documents from a smartphone (preferably a Treo) more conveniently, automatically synchronizing files back and forth between itself and the mobile handset through a wireless Bluetooth connection. You would have also been able to access the Internet for Web and e-mail, edit Microsoft Office documents and more on Foleo without a smartphone present.