Japan-based Kairen [JP] is selling a key holder that doubles as a mini photo frame, which is 1.5 inches in size and features a 128×128 resolution.
The so-called Photty [JP] is available in pink and white, comes with 16MB of memory and can be connected to PCs via USB. Kairen says the Photty can store about 143 pictures in JPEG, BMP and GIF format.
It costs $35 and is Japan-only at this point. I suggest emailing the owners of this online store (that John blogged about recently) in case you are interested in buying a Photty for yourself or your girlfriend.
Via Gizmodo Japan [JP]