Introducing AVROS! I challenge anyone to come up with a smaller lower cost personal computer. The computer here being defined as able to load, store, and run programs under user control. The ability to create programs on-board may also be a consideration. Below are some photos of my Atmel Mega8 based entry.
Having some idle time on my hands during this long weekend I threw together the DIP prototype. The whole thing took less than 5 minutes. Because of fine soldering a miniature QFP version took a little longer but not much. The circuit is very simple: only a chip and bypass capacitor. An LED can be added for testing and debugging but that's a luxury. In any case total cost less than a buck.
On request a wiring diagram and hex file are attached. Fuses are H=c2 L=a4. In this particular image program #0 turns on the LED and returns, #5 turns off, #6 dims and loops, and #7 runs the OS again (same as reset). Of course you can load whatever others you like one byte at a time manually using ':' command or with Hyperterminal "send text file".