The German based Fraunhofer Institute for Silicon Technology is working on a tiny digital projector small enough to fit in a mobile phone.
They've already built a functioning prototype based on a laser beam flashed at a tilting micromirror that builds up the picture at a resolution of 320 by 240 pixels line by line at high speed.
The prototype is currently too heavy and too large to fit inside a cell phone and it only projects red light, as today's technology enables only red laser light to be bright enough.
Original Post: http://www.guerrilla-innovation.com/archives/2004/12/000248.php