The 16mm (0.6 inches) wide projector works by shooting a laser at a single vibrating mirror, and although it works with red and blue lasers, the scientists say that green diode lasers aren't yet small enough, preventing the projector from hitting a full range of colors -- so hold off on thinking you're going to be watching "Joseph and the Technicolor Dreamcoat" from a thumb-drive sized device in the near future. Dr. Peter Schreiber of the Fraunhofer Institute told the BBC that such a device could be eventually embedded into cellphones or PDAs. (source)
In spite of it not being able to project a full spectrum of colors, this is really not needed when you want to display a boring little powerpoint presentation with blocks of text.
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