I've had my INQ1 for over 5 months now. I bought it on eBay for £45 with a 4GB microSD card included.
Despite the long time I haven't got used to it enough to switch to it permanently. My primary phone is an old Nokia and I only use the INQ1 for its Skype feature, Facebook, web browsing, Google Maps, texting via FishText and MP3 player.

The phone comes with a bunch of Internet applications built into it, which include, but are not limited to, Skype, Facebook, last.fm, Google Maps, a Web browser, IMAP email and an RSS feed reader.

They are very nicely integrated into the phone. For example, the message centre integrates text messages, MSN chats, Skype chats, emails, Facebook messages, pokes and requests. When a new, say, Facebook message arrives, you get a sound and screen alert, provided you're logged in to Facebook. The contact list merges your Skype, Facebook, MSN and telephone numbers under one name and displays the contact's Facebook photo. You can import your contacts from the respective apps and it will try to match them against one another by name. If the names don't match, you can match them manually, which is very easy to do.

All applications and features excepting the camera can run in the background and along with other applications. You can, for example, talk on Skype and browse the web at the same time. It's not possible, however, to use the MP3 player during a Skype voice call.

You can install 3rd party Java applications and add their icon to the main screen for quick access. It's a shame that you can't remove any of the built-in applications or even their icons.

The Skype application is limited compared to its PC counterpart, but it works just fine for me. You can use it for Skype voice calls, SkypeOut calls using your Skype credit, text chats, conference calls and multiple user text chats. It doesn't support video calls or file transfer.

The default web browser is very troublesome, but I was able to install Opera Mini without any problems.

My phone has lost data connection several times, which has taken a reboot to restore.

The MP3 player is not devoid of little annoyances. The backlight never goes off unless you put the player into the background. If it only were that easy... To put it into the background, you have to press the Back button several times and go through all the intermediate screens that brought you to the player in the first place. If you just click the hang-up button like you would do for any other application, it will stop playing.

Another major annoyance is how the tracks are organised. The player has faint regard for the directory structure and organises your tracks by ID3 tags. You can search your tracks by Artists, Albums, Tracks (all tracks, no matter what directory, sorted alphabetically) or Playlists. It doesn't know M3U or any other popular playlist format, you have to build your playlists yourself using the phone's playlist editor.

Before I got my phone I had expected it would be able to play tracks from last.fm. I was disappointed to find it was not the case. The only thing it can do with last.fm is to scrobble the tracks the MP3 player is playing.

INQ1 supports USB 2.0 and comes with a USB cable included. The phone can be used as a mobile modem. If you connect it to your PC or laptop via a USB cable under Windows, it will install the modem driver. The next time your connect it to your PC you'll be asked whether to use the connection as a modem or for file transfer (in which case it will be seen as a separate drive in your file system).

When using it as a modem, there is an icon in your system tray showing the current connection speed.

I have used my INQ1 as a modem several times when my regular connection had dropped and it has worked very well.

Skype is free to use. Initially the terms and conditions of the PAYG plan were such that Skype would work for free for 90 days after each top-up (minimum amount £10), but 4 months later they announced that Skype would be totally free without the need to top up.

The modem feature and some of the other applications are subject to data transfer charges, but it's not quite clear which ones. If you want to take advantage of all of them without worrying about the charges, get an Internet add-on.

As I use this phone only for Skyping and FishText-ing, it costs me virtually nothing.

When roaming in Ireland, Italy, Austria, Sweden, Denmark or Hongkong, you pay the same as if you were using it in the UK. When I went to Italy, I talked on Skype for many hours and used Google Maps to find directions and it didn't cost me a penny. Oddly, while I often get poor reception in London (3G most of the time when outdoors, GPRS indoors), the signal was very strong in Italy (HSDPA all the time), even on the road from the airport.

Pros

• Free Skype calls, independent of your data plan
• Works as a modem
• Good selection of built-in applications
• Contact book integrates the different types of numbers/IDs (Skype, Facebook, etc.) all under one name
• Message centre integrates the different types of messages
• 3.2 mp camera
• microSD slot

Cons

• Poor reception, at least in the UK
• Short battery life, takes several hours to charge fully
• Annoying defaults that I haven't figured out how to change yet: T9 mode when typing; Camera defaults to Video mode instead of Photo; Logs in to Facebook automatically after switching on
• Camera without flash
• Included earphones are low quality and cannot be replaced
  
• Poor MP3 player - directory structure ignored, blacklight doesn't go off
• The built-in browser is hard to navigate. Couldn't find the "back" button. Luckily Opera Mini works fine.
• Doesn't store the Skype password (although it does store the Facebook credentials)
• No easy access to the Calendar - takes 6 key presses
• No modem driver for Linux

The phone has a great set of features, but its quality leaves a lot to be wished for. However, it is definitely worth the low price.