I've read that some of the Lilliput 7" have to be fed something like 800x480 resolution to look best, you might oughtta check if your comp can match up with the one you buy.
I own an 8-inch touchscreen (Not Lilliput) and it works OK. It looks best a 640x480 - actually any of the compressed modes are barely usable. The touchscreen function is great for touchscreen games, but not as good as the "pressure" sensitive types like you can find on some tablet pc's. I used this in my car jukebox for quite a while.
Before I bought the good stuff, I was using a 5" Zenith PS2 lcd with my car jukebox. Text smaller than 16pt was little hard to read even with the RGB hack. You might be closer to the screen, though.
