ATI is sampling its first 80nm chip, the RV505CE GPU. This isn't really a new chip, it's just a smaller version of the 90nm RV515.
The RV505 ASIC is manufactured by TSMC and has the same features as RV515, RV516 chips. It supports Shader Model 3.0, 64 or 128-bit memory interface, Avivo and Hyper memory that can address up to 512MB system memory.
The plan is to brand the RV505CE as Radeon X1300 CE and clock the core at 350MHz. that way ATI can keep it passively cooled and make the low-profile cards. The best thing is that this card should be able to run Aero glass just fine and we are talking about a sub-$50 card.