We’re close, VERY close!
The CyanogenMod team now have the Android Market, accelerometer, sound and Wifi working on the HP Touchpad.
The tablet itself is now functional, ports of various apps are not yet working (such as youtube as mentioned in the above video) but they’re working on this too.
Personally I admire their patience with this project and am very excited at the prospect of seeing CM7 on my Touchpad soon.
As always, the team here at Ausdroid will keep you posted on progress.