Yes, it supports JAVA. :-) It is an amazing device. I have traded in my iPad, mini-iPad, and other handheld devices for it. So lightweight and powerful enough to replace my laptop for many activities--not all, but a great deal!
No it definitely does not support Java - you can't play any Java games (e.g. Pogo games), or interact with parts of websites that use Java plugins. You can't install the Java runtime environment or plugins, even if you download them. You can, however, play alternative games, such as HTML5 and Flash-based games.