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Article mentions it's ready to browse the web by default, how is it connecting to the internet though? No mention of ethernet or wifi.

I'd be guessing a USB network adaptor?

That's what it looks like if you look at the pic on http://www.raspberrypi.org/

It has a USB2.0 port so presumably you can hook up a hub with additional peripherals such as a wifi adapter.

The preliminary specs are listed on the website:

If you look in the picture you can see that is exactly what he is doing. I wonder what that other box is though.