Portable entertainment systems for traveling

Vacation time is quickly approaching and I’m thinking of ditching the tv/vcr combo and N64 entertainment system monstrosity we’ve been using the last few years to keep the kiddies occupied on the 12 hour ride. Since technology has rendered just about all of my components obsolete anyway, I’d love to both upgrade and reduce the amount of space and weight needed. Ideally, I’d like a 10.5" portable DVD/gameboy combination, but they don’t make such an animal. (Someone could make a fortune on this. Trust me.)

Mr. Pundit just purchased a sweet Centrino-equipped laptop. DVDs are awesome on it but it’s a bit large. And I’m afraid that if we suddenly stop, there goes the expensive laptop… The upside is that I have lots of p.c. games, but not sure how they’d be able to play them on the road. Is there an option other than a mouse that they could punch in instead of scroll?

Walmart.com carried an interesting item, http://www.walmart.com/catalog/product.gsp?cat=62055&dept=3944&product_id=2584491&path=0%3A3944%3A62055%3A62056, which seems very intriguing but I’m highly suspicious about the quality and about their claims that you can play a DVD AND connect a gaming device at the same time.

And finally, last year a salesman at BestBuy recommended I buy a PS2 and one big or two separate smaller LCD monitors, which would allow them to play both movies and games, but only one at a time.

Does anybody have an entertainment system for the kids? Would you recommend it? If you had about $500 to spend, what would you buy?