We've had some reasonable experiences with the pico-projectors reviewed here at SlashGear, but they're still too expensive to make them anything other than an extravagant toy. Sadly FAVI don't change that with the launch of their PJM-1000 Mini Projector, another aiming for the title of "World's Smallest Projector".
At 4.4 x 1.9 x 0.6 inches it's certainly small, though it can still create a maximum 100-inch image from 12ft away. You'll need a dark room for that, though, as it only musters 12 lumens and an 80:1 contrast ratio for its 640 x 480 4:3 picture. The battery is good for around 50 minutes of standalone use.
Unfortunately, it seems have slimmed down by dropping much of the functionality that we liked in the BeamBox R1 and AAXA P1. There's no onboard memory card slot or internal storage, nor a standalone media player function, so you're limited to playing video from external sources. Both VGA and video cables are supplied, meaning you can plug in your notebook as well as a portable DVD player, but for $279.95 we'd still pick the cheaper AAXA P1 over the FAVI.