Please notice in Softwareforme.com's reponse he mentioned it is a pseudo way... It isn't a tru multitouch approach (because that has to be built into the drivers for the device usually.. or atleast patched into the code and/or kernel)...
Here is a "theoretical" way to do it (this is purely theory based and has never been attempted or applied as far as i am aware)...
the software registers the first touch point.. isolates the location and then ignores it... It then sees a 2nd touch.. isolates it and ignores it.. it then rapidly will look between the 2 isolated points (one at a time) and tracks what those points are doing.... Then it interpets that as a command and implements the function... This isn't actual multitouch because it isn't simlatenously tracking both positions at the same time... it is tracking on a single position at a time and switching between them very fast...
If you want a primary exmaple of how this "could" work... Hold down the J key on your keyboard in wordpad or other program... you will start to see a long string of J writing in the text field.. then while holding down the j key press the f key then release the f key while still holding down the j key.. you will notice an f will be inputted after the string of the j's but after you lift your finger off the f key, the j's do not continue... now with the j still pressed hit the d key and hold it down... now you will start to see a string of d's input eventhough you are pressing both the d and j key... now lift your finger off the d key... notice how the d stops inputting while the j is still held down... now hold the d key down to get a string of d's and lift your finger off the j key and press it and hold it down again while still holding down the d key.. you will notice the j's start back up with a long string eventhough you have the d key depressed also.. finally lift both fingers off the keyboard...
Your keyboard (atleast the majority of them) do not support multiple inputs (what we call multi-touch).. if you hold j down then hold d down, let j go and hold it down again, let d go and hold it down again you can see how you get multiple inputs (both d's and j's) eventhough it is only allowing 1 input at a time... now imagine you can decrease the time it takes between lifitng your finger off the key and pressing it down again.. it will start to merge them into 1 set of data... this is a way to get multi touch like features without actually having the support of track inputs simaltaenously....
The final visualization i can give you is this...
Get 2 quarters... but then between your thumb and index finger and start rubbing the quarters together really fast.. you will start to see a 3rd quarter appear inbetween the 2... what is happening is your eye is starting to merge the images of the quarters moving past each other at a rate faster then you can interepret and thus are creating a 3rd image that is a combination of the other 2... This is to show you 2 seperate inputs, when increased in frequency can merge into a single input...