What currently works:
COMPLETE Booting into Android
COMPLETE ADB commands via ADB
COMPLETE Power, back/home and volume button layout
COMPLETE Touchscreen support (Multi-touch, 10 fingers)
COMPLETE GPU Acceleration (2D Acceleration doesn't work, but not a release blocker)
COMPLETE Dual CPU Processor (Both cores are enabled)
COMPLETE Wifi http://www.youtube.com/watch?v=8IVkj_vdY6s (Fixed 10/9)
COMPLETE Bluetooth (Fixed 9/24)
COMPLETE Sound http://www.youtube.com/watch?v=ApfeSj4Ql6Q
COMPLETE Accelerometer http://www.youtube.com/watch?v=8IVkj_vdY6s
COMPLETE Power Management (Fixed 10/4)
COMPLETE Battery Reporting (Fixed 9/29)
COMPLETE Camera (Fixed 10/7)
COMPLETE Vibration (Fixed 9/26)
COMPLETE Backlight (Confirmed in IRC)
COMPLETE LED (Confirmed in IRC)
COMPLETE Multiboot (Confirmed in IRC)
COMPLETE Clockwork Recovery (Fixed 9/30)
COMPLETE Fast Switch Boot (Appears fixed to me Video Update 9/23)
COMPLETE Fake SD card Mount (Fixed 9/26)
COMPLETE Light Sensor (Confirmed in IRC)
COMPLETE Accessing webOS files from Android and vice versa
COMPLETE Touchstone Support
COMPLETE Softkeys
Partially Compass (Bugs need to be worked out)

What does not currently work:
Gyroscope

What's currently being worked on:
Beating Metal Gear Solid 4 under 5 hours.
Bugs and Issues, see below.

What can possibly work:
HDMI through Micro USB (The System-on-a-Chip has the required hardware, have to find which pin #) (webOS 3.0.4 may have HDMI support, and if so we can reverse engineer the process, stay tuned)
GPS (Does not seem possible to implement because hardware seems to be lacking GPS functionality)

Issues:
msm_rotator does not work correctly. Screen may rotate for video, but becomes distorted.
Sleep Issues
Camera fails to save to disk, does not rotate
Battery Reporting needs calibration
Light Sensor does not work automatically, needs to be turned on manually
No audio support for BT headsets
Add divx codecs for video support
Battery does not shut down device at critical battery level
Airplane mode stays on once turned on, happens because the touchpad doesn't have a real radio interface layer.
Plugging in headphones does not mute external speakers