Depress a small button on the side, and the case folds upward, lifting the tablet to a perfect angle while two halves of a keyboard butterfly out underneath. The two sides lock into place and simultaneously turn on Bluetooth pairing. Your iPad 2 will still need its Bluetooth turned on and will have to be initially paired, but after that it's an easy flip-open-and-use experience. I love that the keyboard is full-size, and that it's placed in perfect proportion to the landscape-oriented screen above it.
I just don't like the keyboard itself. Shallow, hollow-feeling keys and a lot of flex made for a lot of missed key presses and double-typed keys. Because the keyboard is split in half and rejoined, the spacebar is split in two, which is a little unnerving at first. Additional functions shared with the number keys require simultaneous pressing of the Fn key, including volume control and track-skipping, which is a nuisance. In keyboard mode, that Smart Cover can still stay attached on the top edge--just flip the cover behind the iPad 2 like a cover cozy. It can be flipped back down as a screen protector when you're away from your desk.
Incidentally, I wrote this whole review on the Fold-Up Keyboard. I credit Logitech for the excellent positioning of the iPad 2 screen stand, but the keyboard's a clear compromise to make the clever folding design possible. Would I use this keyboard again? Probably not. It's more plastic-feeling than those old folding portable PalmPilot keyboards I remember, and the mushy raised keys don't simulate a laptop experience well enough.
Those who want to treat the Fold-Up Keyboard as a clever iPad 2 desk accessory for an office executive, go ahead. You could do worse. It's just not the best keyboard around, and isn't wanting a good physical keyboard the reason to consider a keyboard case in the first place?