There are two basic camps today on how this can be done. IBM and Infineon advocate the trench capacitor approach, and the rest of the DRAM industry is by and large looking for ways to build a better stacked capacitor.
The vertical transistor DRAM cell developed by IBM and Infineon is an extension of the trench capacitor structure buried in silicon that was developed earlier this decade by IBM, Infineon and Toshiba. The trench capacitor structure situates the transistor on top of the silicon surface and to the side of the capacitor, but the vertical transistor is different in that it is buried inside the walls of the capacitor.
A main advantage of the IBM-Infineon approach is its reduction in the size of the cell relative to the lithographic feature sized employed. Today, manufacturers are generally able to construct DRAM cells that are eight times the employed feature size squared (8F2). IBM claims it can reduce the cell size to 6F2 -- a 25% reduction compared to a traditional "folded bit line" structure -- using the same process technology.
http://www.siliconstrategies.com/story/OEG19991028S0040