The device supports a number of different touch gestures using one, two or three fingers -- including flicks, pinch-to-zoom, and panning. It also packs Microsoft's BlueTrack technology, so it should work on pretty much any surface, and like most other 2.4GHz mice out there it has a small USB receiver to communicate with your computer. The company is shipping its mouse with a set of drivers to enable the touch functionality on Windows 7, so it doesnt look like it will work on other operating systems. It also doesnt appear to allow customization or addition of gestures.
Microsoft claims the Touch Mouse is the result of two years of research and prototyping. It will begin selling the device in May for $80, but has begun to take pre-orders through its Amazon promotional website.