By Staff Writer – John Federico (@gadgetboy)

CNET’s own Ina Fried got her hands on a prototype of the upcoming Entourage Edge eReader that I told you about last week.

While watching the CNET video (see it after the jump) my first reaction was simply, WOW. My second reaction was ZOMG I CAN’T WAIT TO GET MY HANDS ON THIS THING AT CES!

While only a prototype, the device’s interface seems pretty well polished, particularly given the fact that it’s powered by Android – an OS whose primary attention by the development community has been centered on mobile phones.

The resistive touchscreen requires a stylus to use, but based on what we see in the video, this works quite well. The e-ink display allows you to read EPUB and PDF files but using the stylus, you can move content between the displays. If the original item contains color like, say, a photo, it will appear in color on the LCD screen.

Similarly, you can use the stylus to manipulate text, take notes and select graphs that you might want to highlight for later.

As excited as I am about this new device, Ina says it “definitely has the look and feel of a first-generation product,” and like most new devices, has some bugs.

Disclosure of Material Connection: http://dsclzr.us/0