Best of Shenzhen: $87 Android 3.5″ capacitive phone, MTK6516 FG8
Here are the specs for this Mediatek MTK6516 ARM9 Based so-called FG8 Android phone:
MTK6516 ARM9 460Mhz + 260Mhz DSP (that can do certain video playback and other UI acceleration)
Froyo Android 2.2 supported
Dual-SIM Card slots GSM Quad-band 850/900/1800/1900MHz
3.5′ Capacitive HVGA 480×320 screen
works worldwide on GSM/GPRS/EDGA (no 3G HSDPA data speeds though)
WiFi, AGPS, FM, Bluetooth A2DP, Mp4 playback support claimed, 2Mpix Camera, Microphone, MicroSD card slot (up to 32GB), 3-4 hours talk time and 200 hours standby time claimed (I haven’t tested yet).