Further blurring the lines that divide digital compact cameras and camera phones, Sony Ericsson has come out with the 8.1-megapixel C905. As part of the Cyber-shot camera phone family, you can expect a more-than-the-average feature set on this baby.

This slider comes with a Xenon flash and technologies such as auto-focus face detection, smart contrast and image stabilizer to give you the best shot possible. The large 2.4-inch scratch-resistant glass display allows you to view all your captures easily while the integrated GPS helps in navigation and provides geo-tagging services to all your photos so you’ll never forget where they were taken. The bigger megapixel count will mean more space will be consumed by your photos, but not to worry. They’ve also decided to include a 2GB Memory Stick Micro (M2) as part of the sales package. Veering away from the camera functionality, it also packs in a media player, FM radio,Bluetooth, Wi-Fi, 3G, and a host of others.

You can choose from Night Black, Ice Silver and Copper Gold once it becomes available towards the end of this year (read: 4th Quarter of 2008). If it does make it on time, this’ll surely make for a pretty fine present once the Christmas season begins.