Wow this is really cool news.
LinuxBIOS is a Free Software project aimed at replacing the proprietary BIOS you can find in most of today's PCs.
Linux BIOS in action
Alan has posted video of his work. This setup includes
=> Linux kernel
=> Tiny X11 server called Kdrive
=> The Matchbox window manager
=> rxvt - a colour vt102 terminal emulator
All of the above software packed on a 2MB flash chip :).
Found via Uwe Hermann blog