http://reviews.cnet.com/8301-18438_7-20021924-82.html

Neonode says its patented touch-screen technology, zForce, "supports high resolution pen writing in combination with market leading finger navigation including gestures, multitouch, sweeps and much more. zForce uses no overlay (like resistive and capacitive touch screens) on top of the e-ink display thus creating a 100 percent clear window free from reflexes and parallax effects and produces a true paper like experience."

Read more: http://reviews.cnet.com/8301-18438_7-20021924-82.html#ixzz18xKF42BF
It also talks about a touch-screen technology that could be used by Amazon for its Kindle.

Thanks for pointing out the article. I always wondered how the infrared touchscreen worked.