Fusion Garage began taking preliminary orders in mid-August at $499 for it’s 16GB Wi-Fi tablet and $599 for it’s 16GB Wi-Fi/3G tablet. It has now dropped prices on pre-orders $200 – now $299 for the 16GB Wi-Fi Grid 10 tablet and $399 for the Wi-Fi/3G version.

The new tablet runs the new Grid operating system (which is based on the Android operating system kernal) and the 10-inch touchscreen has highest resolution of any tablet on the market at 1366 x 768. The Grid 10 also sports a 1.3 megapixel front-facing webcam for video chatting, Bluetooth 2.1, a microSD slot, built-in microphone, speakers and a stereo jack (combines audio and microphone). It is powered by the Nvidia Tegra 2 1GHz processor with 512MB of RAM. The Quad Band 3g radio is only GSM-compatible.

The Grid operating system differs from the standard Android build in several ways. It utilizes Microsoft’s Bing as the primary search engine instead of Google and has the addition of the Grid Shop, which is a Fusion Garage-specific app store; the system will also run Android apps from the Android marketplace.

The Grid 10 tablet is 10.8-inches long, 6.8-inches wide and 0.55-inches thick. It weighs 1.52 pounds and includes a travel charger and headphones.

The pre-order can be done at Fusion Garage’s web site – shop.fusiongarage.com. Amazon is also taking pre-orders, but is not showing the latest price change yet.