Pandigital, a company known for digital picture frames, will be dropping their first e-reader, the Novel, next month. For $200, users will get a 7-inch color touch screen, WiFi (802.11 b/g/n) connectivity, and 1GB of internal storage. Like many other e-readers, the Novel supports PDF, EPUB, and HTML formats and features a mini-USB port for transferring files to and from a PC or Mac. There will be full support/integration with the Barnes & Noble eBookstore providing access to scores of books, magazines, and newspapers. Preloaded applications include a web browser, email client, alarm clock, and calendar. Don’t expect this to eat up too much of the nook market share as it will only have a limited release when it streets next month.

Here’s a quick walkthrough of the Novel courtesy of CNET/Crave: