It can, I've used my Pandora to watch a lot of vector videos and play some simple games, but a lot of games are probably too intense for the Pandora to handle. If you have any in particular you want me to try, just say and I'll find out how they run.
I'm attempting to load up Dawn of Dragons now, but it got about halfway through loading when my internet kicked out and now I can't get it to load the rest, even after a refresh. Something weird going on.
edit: got it. It runs, it is too big for the screen though, even when fullscreened, and it is noticeably slow: click a button, wait 3 seconds for it to actually do what it's supposed to do. CPU bound, my classic Pandora clocked at 800Mhz is running hot, a 1Ghz Super Pandora 2.0 might be better.