Here's a novel idea, the Monet LCD Photo Frame with a motion sensor that turns on the screen when you walk into the room. It has an 8-inch screen in your choice of 640x480 or 800x600 resolution. Two of the model choices can play MPEG movies, and it also has a credit-card-sized remote control.
If you can get past the company's cheesy-looking website, this looks like it could be a slight innovation, where in addition to its unique motion-sensing capabilities, it's made in just the right size to fit 8x10 photo frames. The site shows examples of nice-looking mattes giving the frame an elegant old-skool look. It's $175 for the 640x480 frame, $200 for that same size with MPEG playback, and $250 for the 800x600 MPEG-capable model.