Start-up Virtual Devices has developed a flashlight-size gadget that projects an image of a keyboard on any surface and lets people input data by typing on the image. The company's Virtual Keyboard is designed for anyone who's become frustrated with trying to peck information into a handheld but doesn't want to schlepp a notebook computer around. It uses cameras to track the location of a person's fingers in relation to a map of a full-sized keyboard. The company announced the device Tuesday.

Handheld manufacturers "have saturated the market for people who just want address books," said Virtual Devices chief technical officer Steve Montellese. He thinks the Virtual Keyboard could help lift sales in the slowing PDA (personal digital assistant) market. Handheld makers, he said, will have to make it easier to enter data into a PDA before people will leave their notebook PCs behind and carry only a handheld. At this point, Virtual Devices plans to sell its gadget as a standalone unit. But it's also in discussions with device makers to incorporate it into handhelds, smart phones as well as PDAs, Montellese said.