Is there flashcard type software that could run on the iliad? I realize you could just make your own PDFs and put the answers on the second page, but I was just thinking of the interactive teaching/learning aspect of the device.

It's a good idea. I'm sure there's something out there in open-source land for linux that could be ported fairly easily. Maybe "MemAid"? http://www.filegate.net/linux4kids/