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Reports from the Consumer Electronics Show indicate there are at least a handful of new photo frames with video capabilities on the horizon for a bit later this year. Samsung introduced their 700Z which makes use of an active matrix OLED screen and makes use of Bluetooth technology for wireless sharing. You can see it below. It should be on the market this spring.

Another option, hopefully by March of 2010, will be the Sony Dash. It's actually an "internet viewer" not just a picture viewer. It's said to be a 7 inch touchscreen display and will give you access to a range of internet content. Users should get access to internet radio, video, an alarm clock, and more.