It comes with Android 1.6 but there's a comment on the above website saying it can be upgraded. You can also find it for less than $100 on sites like alibaba.com and dhgate.com but you will have to buy more than one unit.
On a sidenote, the seller I linked to is flexible about what price they stick on your package. You don't want to overdo it though, otherwise you might end up paying even more tax than normal.
They show both portrait and landscape mode in the video and it doesn't look like there's a problem though.
No free-range internet? That's disappointing.
There are 6 devices with wifi and touchscreens for less than $200.
This website has videos and ifnormation on a lot of new devices: http://www.shanzai.com/
