The reports are in! The iPad connection kit does actually will work connecting various USB devices the iPad.
Our own tests bear this out. Despite a warning that the device was not supported our Apple Keyboard worked like a champ.
Unfortunately our Flip camera would not connect to the iPad via USB. We received a warning that the device required too much power.
The kit also seems to work with most USB-based audio headsets, headphones or microphones. It made it possible to listen to music and a take VoIP call. The call quality is good, at least as good as AT&T service. It will probably allows easier use of Skype for those who do not use Bluetooth headsets or the Apple iPhone earbud/microphone set.