I had answered this question partially in one of the Nexus S related questions.
Also, you can refer the developer.android.com URL for a demo app. I think, this uses dummy NFC tag.
If you are interested in developing some hardware demos then you need to buy a few actual NFC tags and try out the above app on your Nexus S phone device. I found a few sites (1, 2) who sell NFC tags, kits, etc. BTW, I have not tried any of these sites.
Based on what I came across, for now Nexus S provides only read functionality for NFC tags and support for other modes is planned.
EDIT:
Android blog states following are the new features in Android 2.3.3:
- A comprehensive NFC reader/writer API that lets apps read and write to
almost any standard NFC tag in use
today.
- Advanced Intent dispatching that gives apps more control over how/when
they are launched when an NFC tag
comes into range.
- Some limited support for peer-to-peer connection with other NFC
devices.