via USB or internal chip.. possible?

noBounds has 3d acceleration, so yes. I don't think it's anything like plausible to send the video back and display it on the tablet; external acceleration will require an external display.

what the hell is nobounds exactly and what phase of development is it in? i see all these articles and news and it doesnt actually tell you anything about it?

There's a thread here.

okay
when will i be able to buy an adapter from USB to DVI then that i can use on my N800 then?

Holy cow! How should we know?!

Why don't you post that in the relevant thread, or better yet email the address shown at the end of the demo video? (You did watch the video, didn't you? If not, I guess it wouldn't tell you anything about it.)

Something like this perhaps... The interesting part is the OpenGL-ES teaser/mockup... Existing usb->display solutions have very poor support for hardware rendering of any kind. Hopefully they've enabled external output (via usb and wireless) from the unused PowerVr chip inside the IT, or they are somehow using the dsp for video encoding to limit cpu usage. If they are releasing this as open source it will open up possibilities for other uses...

They are not using the PowerVR chip in N8x0, it is just a teaser. See replies http://www.internettablettalk.com/fo...441#post155441 and http://www.internettablettalk.com/fo...278#post155278
To me it looks like they are trying to do some more advanced remote display technique than sending just (compressed) bitmaps like VNC, RDP and slightly more advanced remote display than X protocol allows. I think X allows you to do remote OpenGL (which was showed here) but definitely not streaming and displaying mpeg4 video. So the innovation here is either extending remote display protocol to allow streaming video and audio (nice idea) or even full blown remote method/program calling so most of the stuff runs on the other side (nice in theory, maybe not practical in reality).