You're seeing that right -- it's Open webOS running on our old friend the Nook Color. Yes, it's incomplete, and it's laggy, but it's also a pretty damned beautiful sight if you're a fan of open hardware and open source software.
Ping-Hsun Chen, a savvy fellow from Taiwan, got the desktop version of Open webOS up and running using the same methods we're used to seeing for Ubuntu distributions. It's running more as a layer on top of Android than it is natively, but it's still a huge first step and paves the way for all sorts of fun hackery getting Open webOS on any device that has been running Ubuntu -- like the Galaxy Tab 10.1 or the Transformer.
With further refinement, and better hardware, we can see this becoming a viable alternative for folks who want to give Open webOS a try on a cheap device. It's the kind of innovation we all here at Mobile Nations love to see, and you can bet we're all keeping a close eye on this one. Derek and the crew over at webOS Nation are pretty excited about it, and you can bet the WN forums will be jumping. Head over and join in the fun!