Well, I have done some more research and I have discovered that the Xenarc 700IDT is not eGalax compatible. For some reason Xenarc decided to use a different TS controller in this model.
The USB touchscreen controller is made by a company called Liyitouch. There are a set of pre-compiled drivers that come on the CD with this touchscreen for RH9, Mandrake 9, and Mandrake 10. If you are not using those distros or have a custom kernel you are kinda SOL (at least as far as vendor CD supplied drivers go). I am running Debian "sarge" which puts me in the SOL category.
So, after a bit more googling I came across a very interesting company called Touch-Base.
http://www.touch-base.com TouchBase makes specialized drivers for all kinds of pointing devices.
While looking at what they do I came across a Linux driver for the liyitouch controller available from them! It looks like this company is building off of the java driver interface (not the technical name) and has a full suite of calibration tools and support for their drivers. The downside, you have to buy it from them. I will be purchasing a driver from this company since I don't have any choice with my 700IDT on Debian right now.
So hopefully we can get some people together and get some drivers from Xenarc/Liyitouch for the other versions of linux. Let me know if you are planning to purchase one of these unit for use with Linux and I will probably be able to help you get it going.
Happy Hacking,