Their hardware solution is interesting. The mid connects to a IO board via a special connector. A connector that can also take what amounts to a TI and ram on a separate board (basically the same as what is inside the mid), or their usb to hdmi dongle (this is how your able to use the dongle to make the "smartbook" act as a secondary screen).

As for their "multi-os" ability, i suspect it is similar to what archos did with the 5IT. Basically they have taken the dalvik VM of android and put it on top of their existing linux distro, and rigged a button of some kind of switch between the distros xorg display and the vm display (would not surprise me if their ubuntu support is based on the debian chroot solution developed for maemo).

And yes, the screen resolution on the mid sucks for the price they are asking.