+1 to where are you getting the screen. I recently (4 months ago) was involved with a touch screen project and the available screens were garbage compared to the iphone. if techcrunch has a source for awesome touch panels that is amazing but I'm skeptical. the rest of the hardware is tricky but at least doable. the software stack will take at least four times longer than estimated, perhaps moreso now that every armchair programmer on the internet has been invited to participate.
our supply chain guys sourced it - we haven't set yet if we are going LCD or exact specific specs (we need to run power tests). the dual touch pad sitting behind it is coming out of a company that hasn't seen their tech integrated into a major product yet.
im sorry we cant mention company names just yet - we are doing this through proxy (ie. using a supply chain company, design firm and manufacturer). I am hoping I can publish the full tech details at some point in the next 24h and we can go from there
Cost to build a single one, ignoring volume discounts and cost to assemble: $498. Being able to make one without a proxy (ie. using a supply chain company, design firm and manufacturer). : Priceless.
I really hope the screen company is Pixel Qi. Here is their prediction for a touchscreen price:
"INTEGRATED TOUCHSCREENS
Touch should just be an incremental cost increase to the screen and embedded directly into it. Pixel Qi is working on low-cost approachs to integrated touch with a target of a $5 -$10 pricetag." (http://pixelqi.com/products)