I finally made time and ordered a couple Raspberry Pis for myself. As first reported by TechCrunch all yet to be manufactured Pis are gonna automatically be upgraded to 512M of memory. Got an email message from newark.com and indeed I will be receiving two 512M models. Sweet!
I saw a demo of the Pi at JavaOne and it truly is a pretty amazing machine for only $35. We should be able to do quite a bit with 512M of RAM.