It's not quite multi-touch like the iPhone, though it does offer "a new and unique way of controlling touch screen-based devices by recognizing and responding to the sweep of a finger across the screen," according to HTC's press release. What's more, TouchFLO automatically distinguishes between stylus and finger input and will act accordingly.
Links:
[1] http://www.fiercewireless.com/wiki/HTC_Touch
[2] http://www.fiercewireless.com/story/comparing-touchscreen-phones-giorgio-armani-phone/2007-09-26
[3] http://www.fiercewireless.com/story/comparing-touchscreen-phones-apple-iphone/2007-09-26