can't get much smaller then pico, the chips are too big to fit on a smaller board but the pico has amazing functionality for its size wouldn't you say???
I did read a little bit of the article but i thought when they said you had to hook up a screen to see what your doing that it was only because the GB screen was too small, it still woulda been neet to see what xp looked like on a gb screen.
the bad thing about this idea is that you are running an OS off of a solid state memory device which has limited rewrites. I believe it was calculated that after around 3 months or so of running the memory stick would die