To copy text you just hold the Shift key and drag your finger much as you would use a cursor to highlight text on your computer. From there you just hit edit for a menu that has the copy and paste option on it. From there anyone can figure out how to paste the text. There is no hidden keys or tricky restrictions from what we can see.
This is fantastic news as one of the biggest complaints we hear about smartphones today (especially Apple’s iPhone). The other is integrated Flash support in the web browser. Every time we hear something new about the Pre and webOS, we grow more and more excited to actually have one as our own. Hype like this has not been seen since the announcement of the iPhone.