A demo of the latest Android user interface has hit the web—Android Community has a lot of screenshots and some video of a demo in a conference. It’s on a touch screen phone (natch) and looks pretty smooth...some new features are “pattern unlock” which lets you set a pattern to trace on a grid to unlock the handset, and a compass feature. You have to watch the video to get just how cool the compass feature is—in the example it changes the video display on the screen as you move the handset so it looks like you’re looking through a small window that moves in your hand.

Live demo is here:

• Google Lists Top 46 Android Applications From Developer Challenge