We had a chance today to play with Acer's tablet codenamed Picaso, and we can tell you that the device works quite well.

It is a 10.1 inch tablet, with 16GB of storage, and was running Android 2.2 (Froyo). We were told it will be running Android 3.0 (Honeycomb) by the time ships.

Android 3.0 will rely on virtual interface buttons more than physical hardware keys, and the home button will be hidden in most of these devices.

The Acer that we got our hands on was powered by a 1.0GHz Nvidia Tegra 2 processor in its T20 variation. Although the  device ran quite well with 512MB of RAM, we would definitely like to see 1GB.

The device has mini HDMI, a USB interface for peripherals, mini usb and two cameras. The rear facing camera has 5 megapixel resolution while the front facing one has 1.3 megapixel.

We were able to play Dungeon Defenders on it, and were impressed with the performance. This game will ship on PC, Playstation 3 and Tegra based devices (phones and tablets).  The graphics looks great as the title is based on the Unreal 3 gaming engine.

Here are some pictures on the tablet with Android 2.2.