Google didn't exactly confirm or deny that they would eventually produce the fabled gPhone during the Open Handset Alliance conference call.

Forbes is reporting on an HTC device codenamed "Dream" that they suggest is possibly the much-awaited hardware that could launch in 2008.

The Dream phone is one of several prototypes that Google used to demonstrate the Open Handset Alliance software to potential members.

Forbes quotes HTC CEO Peter Chou saying of the Dream, that in the time they've been working on Android designs that "this is the best one we've seen".

The handset measures around 3 by 5-inches, offers a touchscreen that can be viewed horizontally or vertically, as well as navigational controls and a swivel out keyboard.

The software, so we assume part of the Android platform, has what sounds like "time-sensitive" touch controls that are said to expand your area control the longer you touch.

Apparently HTC is considering bringing the phone to market in the second half of 2008.