This is one of those possibility-due-to-association type of rumors. After Dell's hiring of Motorola's Ron Garriques in 2007, some speculation about the company's entry into the mobile game has surfaced. BoyGenius makes it super extra special clear that this bit should be taken with a bucket of salt at this point, but it is tantalizing. Wasn't there word a while back about a potential Gateway phone?
Considering that Dell was the first big name OEM to ship Linux pre-installed to the masses, Android, or perhaps another tux-flavored variant, is pretty much a given... That is, if there's anything to this buzz at all. WinMo and Symbian are just as likely, I suppose.
Dude, you're getting a cell. I'm sorry. I know I should have better taste than that. But I don't.