It's probably just the horrible background music and the schizo camera work that makes Doug Liman's look like butter, but this video of Windows 95 running on an iPhone by the iSoft team makes my tummy turn.
The hack makes use of a standard Windows 95 image and the Bochs emulator, though as you can expect, the performance is thoroughly crummy. They're working on getting Windows XP to work too. An abomination, I say. [YouTube, Good iPhone - Thanks Steve!]