The Touchdroid project development team finally cracked a solution for multi-boot functionality on the now-out-of-stock-because-of-dirt-cheap-price-cut HP TouchPad–and the team has a demo video showing off its work.

The demo video shows that the HP TouchPad can now dual-boot webOS and Android 2.3.5 Gingerbread.

The Touchdroid team announced the availability of the demo video on RootzWiki, along with appreciation for growing involvement from many developers. The Touchdroid project has “turned into a large group effort,” said RootzWiki member rhcp011235.

Touchscreen interaction still does not work–and the team has that crucial functionality on the top of its list. The CyanogenMod team, which also succeeded in making Android boot up on the HP TouchPad, is also working on a touchscreen driver.

The Touchdroid team recently hit a bump on the road when one of its members allegedly misappropriated funds donated for the project and misrepresented the team.

Both the Touchdroid team and the CyanogenMod team lacks HP TouchPad development units. Many of the developers hacking away at the Android source code just to make it work on the HP TouchPad, in fact, do not have HP TouchPad units. HP promised to produce one more batch of tablets, but they won’t be arriving any time soon.

Both teams may be able to accelerate their efforts if they had access to more HP TouchPad units, which have disappeared fast from store shelves after HP announced a massive price slashdown last month.

The Touchdroid team, however, advises the public not to expect any expected time frame for completion of the project, as the team members themselves have no idea. The team vowed to provide occasional status updates about important matters related to the project.

Any ideas as to how the Android community in particular, and the opensource community in general, can help these teams’ efforts?