The unit I played with didn't work (other than the silver home button), but then again it wasn't supposed to. As you can see from the gallery, it looks an awful lot like the new Nook Touch, except that this device will be using the new XGA screen (1024x768 resolution). It's also going to have a touchscreen, obviously, but they could not tell me whether it would be capacitive, IR, or what have you.
About all I know at the moment is that it will run Linux, not Android, and that it has Wifi, speaker (on the back), microSD card slot, and a headphone jack.
BTW, this is an engineering demo. Just because this one looks like the Nook Touch does not mean that the production model will also bear a resemblance. (But I think it will.) Also, the number that you can see in the photo is not the model number; I think it's just the number for this particular sample.