There is an Acer Be-Touch E400-C2 running Android v2.1 for $561 incl GST at PB Tech. Looks like it has the same processor as the HTC Hero (Qualcomm MSM7227 @ 600Mhz) But it's ARMv6...so some apps won't run on it (Flash and Google Earth). You need an ARMv7 processor for those. 

RAM is 256MB....not TOO bad. Again, similar to the Hero. 

Not a bad price for that phone brand new. 

Good to see these things coming through the PC channels. Drives it home these are more about smart than about  talk.

Check out the acer.co.nz web site (products -> Smartphones) for more details and a list of places selling the Acer line of smartphones.