I just read about this place on SFWeekly Blog. They've been open since January, I don't remember reading any reports on CH.
"The shop offers Philadelphia-style Italian water ice, frozen custard, and ice cream. Water ice is different from snow cones or shaved ice ― it isn't simply syrup poured over ice, but a frozen confection made with fruit purees or concentrated syrups. The small size goes for $1.99, with a daily 99-cent featured flavor."
"In Philadelphia, you see water ice at every pizza place," he says. (Trend alert: In South Berkeley, the owner of Sweet Adeline Bakeshop and one of the partners in Oakland's Dona Tomas are teaming up for a pizza-and-frozen-custard place called Addie's Pizza Pie.) "
Flavor Brigade: 3540 Fruitvale (at MacArthur), Oakland.
5004 Telegraph Avenue, Oakland, CA 94609
3350 Adeline St, Berkeley, CA