Have you considered a new IBM X series? Using an X22 right now to type this message right now. I've used a 600 and a T22 before, and I thought the X22 would be too small, but it works really well and has a full size keyboard. Got used to the 12" screen, thought it would be too small. The screen is nice and bright. The Radeon M6 video actually allows me to play Counter-Strike at 1024x768, but frame rates drop when there's a heavy fire fight or when someone throws a smoke gerenade...
The X series is a combination of the old 240 + 560/570. The IBM keyboard rocks, and has good touch and feel. People say the old 600 had the best keyboard. The X series keyboard is more like the T22, a bit firmer, and has less travel because of the smaller size, but I've gotten used to it.
Is you need to have even smaller size with 10.4" screen, you might try to look at the Sony older 505 series, or the new TR Series.
But you can get a X24 or X30, new off IBM offical ebay store for around $900, if price is an issue.