This is what it looks like.
http://www.galleryofguns.com/gungallery/PowerSearch/showimage.asp?img=170344.jpg
Mine is the .223 and it's really an AK101 with a modified stock and the trigger moved back. A lot of people re-configure the rifle back into a more traditional setup, but you have to make sure to include/replace 5 (I think) American made parts if you want to modify it.
Going back to your question, no it doesn't accept high capacity magazines, unless you do a little work yourself. If I understand correctly, they put the feed ramp into the magazine instead of the magwell. You can fix that if you're any good with tools, and there's lots of information on the web on how to put a feed ramp into the magwell.
I'm hoping the awb ends, and then they'll import high capacity magazines for these guns.
BTW, you should expect to pay less than $300 for one of these guns, unless it's the .308 version, which might cost around $300 or a little over. I bought mine for about $230, but it's a .223. The 7.62x39 version should only cost around $200 - $225.