Cool demonstration of the tech in action, but damn woman, get back on the road! Brief clip, with the fun beginning at 30 seconds and ending pretty much instantaneously. Update.
Now, the driving may be terrible, but the video itself answers a question about the emulator regarding sound support. Short answer: It looks like it has it!
Update: As is painfully obvious in the demo (and noted below by beloved Gizmodo commenters), there's something wonky going with the touchscreen, which looks to be anything but sensitive.
However, as our tipster Travis points out, this "wonkiness" is most likely due to the nature of the emulated OS:
First off I'd like to point out that this is an emulation of the classic PalmOS running on top of the new WebOS. The classic palms uses a resistive touchscreen and as such would require a stylus with a much smaller point of accuracy. Now you're trying to replicate that on a capacitive touch screen. The emulator doesn't know that though and its still looking for that stylus tip.
You can actually see on the video one of the ways that Palm tried to work around this discrepancy. When she touches the screen there is an after effect of where she touched. If you watch again you'll see that she's just not touching in the right place. Instead of noticing where the emulator is registering her touch and re-adjusting appropriately she's just poking in the same spot over and over. The 'wonky' thing that's going on with the touchscreen is that you've got a capacitive touchscreen designed around finger based input trying to replicate the input in a way that the PalmOS software looking for a 'push' on a resistive touch screen from a stylus will recognize.