Let's think logically here regarding theories on these two features. Camera: There are only references to ONE Camera (to date) in the beta software for iPad 2. Seeing as iPad 2 will most certainly have FaceTime, as it is the new feature of 2010-2011 Apple has been pushing on all of their products across the board, logically the only camera MUST be a front facing camera on the same side as the screen. These 1MP resolution references are surely to the front facing, FaceTime camera. It would make NO sense to only have 1 camera, that does not face the user, with a low resolution, when Apple could EASILY fit a 5MP or higher camera in the iPad 1 or 2. Ignore the nomenclature of the files, Apple labeling a lens as "Front" or "Rear" in the files is not that big of a deal when you consider they intentionally mess with things to prevent product detail leaks, and it's inconsistent with logic and their past product trends. Display Theory 1 (What I think will happen): XGA (Current Resolution) It also follows that, in combination with the most recent rumors, that iPad 2 will also have the XGA, "0.79MP", 1024×768 - not the "retina" display that was initially thought to be possibly used, but now is being refuted. If the iPad 2 were to have a the "Retina" resolution some have rumored, then the camera would require the specs of, "QXG", 3.15MP for the 2048×1536 resolution to compensate for this retina, as oppose to the 1MP camera in the files. In addition, a retina iPad display would be VERY costly, more than the average desktop/laptop display. Theory 2: QXGA (Retina Resolution) Like the iPhone 4/iTouch G4, with it's retina resolution, it's paired with a VGA FaceTime camera that is only able to output at half of it's pixels (640x480 camera for 960x640 display). That said, even with a 1MP FaceTime camera, it's possible we'll still see a retina iPad 2 display.. That means a 2048×1536 screen, paired with an SXGA 1280×1024 (~1.3MP, which is known as 1MP commericially), means a screen that's 2.4x "larger" than the screen. It may appear slightly more blurry due to it being a 2.4x difference instead of 2x like on the iPhone 4/iTouch and because it's a larger screen size wise. They might be able to fight the expensive cost by purchasing in large quantities (like recent articles have noted they're spending TONS of cash on pre-purchasing large quantities of screens for 2011+) Costs, simplicity and past trends taken into consideration, I feel that the camera is a Facetime, Front-Facing 1MP Camera. At this point, the resolution could go either way, but it would be retina if Apple is to keep their standard of "HD" screens across the board, if they can fight costs. Thoughts and input!?