Late last year, a developer calling her/himself RyeBrye showed off a working Multitouch app on a T-Mobile Android G1. Turns out that RyeBrye’s method required extensive modifications to the G1’s kernel (the core of the OS) and was a bit impractical for general use.Another coder – Luke Hutchinson – reckons he has a way around the problem that requires only a small change to the G1’s Java stack. Apparently the phone was reporting multitouch events all the time, but was just obscuring them.

Hutchinson has written a few test apps (see pics and videos here) although he is careful to point out that the G1’s screen isn’t really intended as a multitouch device and can sometimes misreport event in a way that would require careful coding to avoid weird results. For simple things like pinch-zooming, though, this could be promising.  source