Progress on building an Android 4 (Ice Cream Sandwich) operating system for the HP TouchPad continues with an update from CyanogenMod this evening.

CyanogenMod 9 Alpha 2 has been released and they have made some big strides in video support.

Alpha 1 added hardware accelerated video decoding, and worked with Youtube HD videos. But still did not support Netflix.

But with the release of Alpha 2 came Netflix support.

HP-TouchPadNote that the releases are still in the Alpha phase… not even in Beta testing yet. So there’s a ways to go before a full fledged, stable, version is available. We will keep you updated here at CP as developments continue though.

The HP TouchPad is the tablet that HP famously launched and then give up on after six weeks on the market. Originally priced at $500 to $600, depending on the amount of onboard storage available, the tablet was discontinued and liquidated for $99 to $149.

The TouchPad came with WebOS as the operating system. After HP’s TouchPad fiasco, WebOS was thought to be mostly dead… but then HP’s new CEO, Meg Whitman, gave it a second chance as an open source program.

WebOS continues to work on the HP TouchPad, and there have even been some post-discontinuation over-the-air updates for the system. However, many of us with HP TouchPads long for a stable operating system with access to a much larger selection of apps, plus a few other benefits that Android 4 provides.