Touch screen would be a plug (and install drivers) and play thing. No biggie.
Its a 600mhz, pay the extra $25 and go to the "M" board, way better!
As far as the machine, it will work well, same as what some of us are using. Uses laptop drives it sounds like, so a little more durable, but more money though. All around a nice setup.
I would set it up like this:
Mini-ITX System with Morex 3677
- Memory 256 MB RAM +$31.75
- Motherboard EPIA M10000 Nehemiah +$25.00
- CD / DVD Drive Slimline CD-RW / DVD Combo +$120.00
- Hard Disk 2.5" 40 GB 5400rpm +$50.00