Dell Mobility is now offering Motorola’s hot new Droid smartphone for $119 with two-year contract.  It will even ship the handset to you for free via Fedex.The deal is only available online.

To refresh: The Motorola Droid comes equipped with a 3.7-inch WVGA (480 x 854 pixels) capacitive touchscreen, a 5.0 megapixel camera with autofocus, dual-LED flash, video recording and its being powered by Google’s newest Android 2.0, which offers new functionality and an improved UI. Users can multitask and switch between six apps at a time and have access to the Android Market.

Other features include a microSD card slot with a 16GB card included, 3.5mm headphone jack, 3G, EV-DO and Wi-Fi, stereo Bluetooth 2.1+EDR with A2DP, light sensor accelerometer, proximity sensor, GPS support with transceiver and with Flash support coming in 2010.