PC Week called IBM's TrackPointII "the best pointing device we have seen yet". This in-keyboard pointing device comes out of a research program with a major concern to finger dexterity and typing ergonomics constraints. Our Behavioral research demonstrates that by matching perceptual-motor abilities of a user to the task algorithms can improve human pointing performance. TrackPointII provides smooth control in the popular mixed type-and-point interfaces, without taking hands away from typing position. The time loss and distraction of reaching for an extra device is eliminated. The notebook is GUI-ready, with nothing extra to carry about and find space for. Typing, pointing, selecting and dragging all become parts of a single process using a single device, the TrackPoint II Keyboard. This talk will focus on the research methods and milestones in developing TrackPointII: The ways in which industrial design, human factors and perceptual psychology interact in this work will be augmented by a story in which new research goals and achievements came with the goal of product impact.