It was capacitive touch. The catch was it was not bonded to the lcd like more modern smart phones are. This meant that it was a 5 minute job by a smart 13 year old to replace the digitizer without needing to replace the lcd.

I loved my N8. Built-in FM transmitter was awesome. And don't get me started on how many times it got dropped and laughed it off. At least 50 times onto concrete and such.