It was running an OS, which looked new.
Apparently the phone was found on the floor of a San Jose bar inside of an iPhone 3G case. Right now we don't have a ton of info on the device in question, but we can tell you that it apparently has a front facing camera (!), 80GB of storage (weird, right?), and isn't booting at this point (though it was previously, and running an OS that was decidedly new). It's not clear if this is definitely a production model, or just a prototype that found its way into the world, but it's certainly a compelling design, no matter how you look at it.
What do you think, real or fake? Does it look better than the
?