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Amazon did not say, but I think it must have the Epson controller because of the 16 grey scales and the joystick (which would not work without fast partial screen updates).
I agree with DG25 that the dictionary support is a major enhancement, because it shows the definition in-line (at the bottom of the screen). This makes looking up words much less disruptive when reading. It relies on fast screen navigation via the joystick, but it would work even better with a touch screen.
I'm not the first to say it, but this appears to be a Kindle 1.5, a nice refresh of the Kindle but nothing earth shattering.
Don't forget that the EZ Reader (Hanlin V3) already has folders, which are still missing from the Kindle. They are important to those with large libraries.
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