Fujitsu showed off this prototype ePaper book reader at CEATEC, which is most notable for its capability of displaying 4096 colors. That's good—current commercial ePaper products are all grayscale—but the pixel density is also important for legibility; I'm not sure that 768 x 1024 pixels in an eight-inch screen is enough. (Pixel density is new black levels.)
Gizmag was there and filled up a gallery with images. It looks pretty washed out in the pictures, but there's obviously a lot of reflection.