Doug,
I used to run a laptop in the car but found it less than ideal due to inverter issues. I subsequently went the PDA route and started using a Ipaq 2210 which has worked really well for me. Downsides are screen size and limited functionality of OziExplorer.
I would not consider using one of the current phones as they will not work well (if at all with OziExplorer - unless you use a O2Xda or the like but their screen size is smaller than a regular PDA and that rules then out for me)
If all you want is city navigation, the phone route will work. For city nav, I run Tom Tom on my Ipaq and it works really well.
If you want to get really serious, spend the money and buy a car PC with 8" touch screen - wn't cost that much more than a new PDA and GPS.
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