Don't tell me that, with all the FDA hub-bub surrounding them, you fellows haven't heard of Electronic Cigarettes. Basically, the E-cig is a device that is about the length of a cigarette (some are smaller/larger), which consists of a battery, atomizer and a tip which is filled with a poly-fiber material that holds liquid. The tip fits into the atomizer (which in turn screws into the battery), where the poly-fiber makes contact with an element inside, which heats up and atomizes the liquid. and you inhale the vapor into your lungs, the way you would a normal cigarette.
The liquids themselves vary somewhat in what is used to make them. The majority break down to liquid nicotine of varying degrees (from 0 to 36mg), flavorings and either vegetable glycerin or polyethylene glycol.
The plus side is no cancer (potentially), no carcinogens (the FDA is arguing against this, since one of the pre-filled tips/cartridges was supposedly tested positive for 1 carcinogen, although that is still up in the air), a ton of flavors, and it technically isn't illegal to smoke them in most places. I work in a city building and we are allowed to smoke them inside. In fact, this thing rarely leave my mouth throughout the day.
Downside. They can be somewhat messy, as the juice can leak a bit through the tip when you draw on it, and the quality control is non-existant. The atomizers can burn out after the first hit, or they can last months (my current one has been going strong for three months). The batteries are the same way, some seem to hold a charge well for months, other stop holding one after a few days.
Price wise the cost is minimal compared to actual smoking. A starter DSE-901 kit will run about $40, and most juice is about $20 for 30ml. I tend to mix my own juices by buying unflavored VG ($2 per 30ml), flavorings ($4 bucks a pop, a little bit of this stuff goes a long way, as you only need a couple of drops when mixing in small doses), and nicotine ($15-20 per 30ml) if you decide to use it (I mix batches with and without it, depending on my mood). Basically, for the price of one carton of smokes, you can get a kit that can potentially last for a month or two, depending on your luck getting a good device and your smoking habits.
You can get more information on the devices and read what the users of them are saying at
E-Cigarette Forum.