The $199 tablet does run a modified version of Android 2.3 OS, which is the version that the OnLive app has been created for.
This means that the tablet can in fact run the Android App, without any modifications. However, it does require a minor hack. Don’t worry though, there is no need to root your device. (We’d like to thank OnLiveFans forum member “riotr” for bringing this subject to our attention).