An Eleuke is able to handle any kind of pedal designed for electric guitars.
It has nylon strings, but the electronics give it plenty of sustain. You will get a "different" kind of sound to steel-strings though, being nylon.
Personally, I like the Risa electric ukes better than the Eleukes.
They cost a bit more, but are overall a higher quality instrument and made in Germany.
And here is a demo video that demonstrates it being used with a "Bluesy" sound:
http://www.youtube.com/watch?v=NuqQWon71do
But depending on what you plug it into, you can get it to sound like nearly anything.
Eg:
Pure tone with some delay effects:
http://www.youtube.com/watch?v=SHGNTXDNXBs
Here's a nice video that demonstrates a few different applications:
http://www.youtube.com/watch?v=woyW9XIZoHM
Here is what they sound like live through a Roland Microcube:
http://www.youtube.com/watch?v=syL_8hpzyc0
And here's and old video of me using it with some distortion:
http://www.youtube.com/watch?v=3tqY6OPtJzQ
Solid body electric ukes has become something of a craze though. There are many other brands now available, such as Anuenue, Fluke and Koo'lau (very expensive)!
I've got both steel string and nylon string electrics - they are different to each other and I like both kinds for what they are.