Wait for it! Game dev David Braben has a microPC that runs Linux and is the size of a key fob, and all for 25 bones.
Here's the specs from the Raspberry Pi website
Provisional specification:
700MHz ARM11
128MB of SDRAM
OpenGL ES 2.0
1080p30 H.264 high-profile decode
Composite and HDMI video output
USB 2.0
SD/MMC/SDIO memory card slot
General-purpose I/O
Open software (Ubuntu, Iceweasel, KOffice, Python)
Here's the Geek.com article as well.
Witness the future of microcomputing right now.
-Mind the gap, bitches.
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