First, let me go on the record as saying I'm a huge Raspberry Pi fan. If you haven't heard already, a Raspberry Pi is a small but complete $35 computer (or $25 without Ethernet). It's a complete 700 MHz ARM CPU with a GPU and 256MB of RAM. It has two USB ports, Ethernet, Audio as well as video out over RCA (Composite) or HDMI at 1080p. It uses an SD Card for it's hard drive and takes 5V at >700mA of power over a mini USB. You can order one from Farnell online and there is a waiting period.

All that said, I wanted to talk about some misconceptions one might have about these...