Palm testing a new operating system?

Some rumours appeared on the Web that Palm has provided some developers with beta versions of a new Palm handheld that isn't running Palm OS 5.

Which operating system it runs isn't known. It could be either Palm OS 6 (Cobalt), the new Linux-based Palm OS or Windows Mobile.

True or not, the whole situation points to the OS dilemma Palm finds itself in. They can’t stick with Palm OS 5 (Garnet) forever, at least not if they want to stay competitive, since Garnet is definitely starting to show its age.

More details at BargainPDA and Engadget.