A slick advertisement for the embryonic product and an official teaser site are available online.
Microsoft confirmed it had been working on Origami, but insisted no date had been set for an official launch.
Speculation about Origami grew as Apple launched the latest innovation in its iPod range.
The California company launched iPod Hi-Fi, a speaker system designed to put the portable music players in living rooms as well as coat pockets.
It also unveiled the latest version of its Mac Mini computer, boasting an Intel processor and the ability to stream media content from other computers on a local network.
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Aspirational product
According to the Origami advertisement, posted online at video-sharing website youtube.com, Microsoft sees the Origami device as an all-purpose multimedia lifestyle tool.
Microsoft wants Windows-based media centres in the home
The device's young, attractive users are shown using the device to stream music wirelessly at home, check the web for directions when far from home, or to send pictures snapped on mobile phones or digital cameras.
Microsoft said the advertisement was created a year ago, and may not reflect the eventual size and shape of any Origami device. There was no indication whether the device would carry the Microsoft brand name or if Microsoft would simply provide the operating system.
The Origami project is a joint effort with unspecified partners, Microsoft said. However, bloggers have linked to a speech made by Bill Gates at the 2005 Windows Hardware Engineering Conference in which he talked about an "ultra mobile" device that would cost less than $800 and would run all day on one battery charge. Mr Gates put a 2007 date on the launch of this product.
Other Microsoft watchers have pointed to an agreement with chip firm Transmeta which makes low-power processors for handheld devices.
(Viewing the HTML source code to the site additionally shows the following text: Origami Project: the Mobile PC running Windows XP)
Do you think this is the device?
As you start the page it says 'touch me' giving the idea of a computer that works off a stylus or touch screen.
The second update to the site says..."wondering where to find me?," "i am everywhere you are, but never in the way" and "who am i?" Must be small
