It is my understanding that HTC added a layer to the surface of the screen that allows the sliding input. You actually begin the thumb slide just below the bottom border, off of the edge of the screen.
I will have to find the leak, but I saw a video review (may be infosyncworld.com). The reviewer had a lot of difficulty with the Touchflo. It did not reliably respond. Unfortunate.
But remember, WM6 is underneath, so the same tiny keyboard will be the only typing input method.
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