Rumors have swirled this week about Apple creating a touchscreen netbook, but a startup called AlwaysInnovating has recently unveiled a product called the Touch Book that will get the jump on the Mac.

CNET News has a video of AlwaysInnovating CEO Gregoire Gentil giving a demo of the Touch Book. I was impressed at how versatile the machine is. It twists and folds like a standard Tablet PC, but the screen also separates from the keyboard so that you can use just the flatscreen as a touch interface. Plus, it has a magnetic lid so that you can stick it to a metal surface like a refrigerator.

In an Apple-like move, AlwaysInnovating has created the product with hardware/software integration. The Touch Book, which will cost $399, uses a customized version of Linux with a user interface designed to optimize the touch interface. Unfortunately, the UI is not shown in the video.

The Touch Book is also built on an ARM processor, which will make battery life great but could compromise performance.