Altera DE2 - Cyclone II 2C35 FPGA

First question would be what is an FPGA (Field-Programmable Gate Array)? 
A field-programmable gate array (FPGA) is a semiconductor device that can be programmed after manufacturing. Instead of being restricted to any predetermined hardware function, an FPGA allows you to program product features and functions, adapt to new standards, and reconfigure hardware for specific applications even after the product has been installed in the field—hence the name "field-programmable". You can use an FPGA to implement any logical function that an application-specific integrated circuit (ASIC) could perform, but the ability to update the functionality after shipping offers advantages for many applications.


FEATURES

FPGA	Cyclone II EP2C35F672C6 with EPCS16 16-Mbit serial configuration device
I/O Interfaces	Built-in USB-Blaster for FPGA configuration Line In/Out, Microphone In (24-bit Audio CODEC) Video Out (VGA 10-bit DAC) Video In (NTSC/PAL/Multi-format) RS232 Infrared port PS/2 mouse or keyboard port 10/100 Ethernet USB 2.0 (type A and type B) Expansion headers (two 40-pin headers)
Memory	8 MB SDRAM, 512 KB SRAM, 4 MB Flash SD memory card slot
Displays	Eight 7-segment displays 16 x 2 LCD display
Switches and LEDs	18 toggle switches 18 red LEDs 9 green LEDs Four debounced pushbutton switches
Clocks	50 MHz clock 27 MHz clock External SMA clock input

source: http://www.altera.com/products/fpga.html