The Pico-ITX motherboards were already small, but they are getting another downgrade in size thanks to the EPIA PX5000EG—a 500MHz board that can be cooled without the bulky fan—which helps bring the form factor down to a minuscule 3.9" x 2.8." As you might have guessed, the drop in processor speed from 1GHz means that this board won't be tearing up any substantial software, but it should prove extremely popular with the embedded market.
If you were wondering what the board was capable of, you will be happy to know VIA is holding a contest where competitors must guess how long the PX5000EG can survive running Ubuntu 8.04 Linux and playing an MPEG-4 video without any cooling whatsoever. Entries are being accepted today through the 21st—the winner will receive an ARGO builder kit.
[VIA and Naked Pico Contest via TechnoVoyance via BoingBoing Gadgets]