NFC works. Yes. There isn't much you can do right now. There aren't a lot of things your nfc will do for you right now. The tags app will create; and, save tags you've scanned. For example:
If you scan a tag: the tags app will show you that tag you scanned and save it there.
You can also create a tag there, IE: Contact Info, Text, URL.
If you have 2 phones with NFC chips you can, for example: Create a tag with contact info; and, the other phone can scan your NFC chip and grab that info instantly. (And then add it to their phone).
The biggest thing coming soon: Google Wallet. Turning your NFC chip into a credit card emulator to pay at register systems that have MasterCard NFC readers.
If you want to test to see if your NFC chip works: Take a credit card you have. Like a Visa with Blink (RFID chip). And hold your phone over it. It will scan, open up the tag app, and tell you unknown tag as it is not recognized from that app; but, assures you it's working.