The W3C is continuing to progress with how to get web pages into a suitable format for mobile phones and other handheld devices. They have released "Content Transformation Guidelines 1.0" (W3C Working Draft 14 April 2008). These were prepared by Jo Rabin, mTLD Top Level Domain (dotMobi) and describe how web pages can be automatically transformed to make them more suitable for mobile devices.This can be done by a proxy server in between the web server and the web browser, or it can be done by the web server itself or even by the hand held device.
Of course content which was prepared without any thought that it might be read on other than a desktop computer is not going to necessarily transofrm well. The Mobile Web Best Practices 1.0 - Basic Guidelines suggest what a mobile device will need and would help in doing the web pages well in the first place.
But a looming problem is that the mobile people are working on XHTML standards and meanwhile a different group is working on HTML 5. This problem becomes apparent in devices such as the Apple iPhone and Apple iPod Touch, which the designers believe can render desktop web pages themselves and so do not activate mobile CSS style sheets.