Yes, it runs Windows Vista, including Aero and it features a 7 inch touch screen. The specs are as follows:
VIA CPU (the one we tried had a 1.2GHz chip).
Windows Vista Business Edition.
7-inch sliding, tiling wide-touchscreen.
Tri-band UMTS / HSDPA, quad-band GSM / GPRS / EDGE .
WiFi, Bluetooth 2.0.
Biometric reader, front-facing camera.
Microsoft pushed the development of the Ultra Mobile PC devices over the last couple of years, as a sort of mini-Tablet PC. With a number of manufacturers releasing models. Its definitely good to see more manufacturers join in with such a wide array of devices to try and push the price point down, hopefully to the point at which I can afford one.
Engadget has more details.