] In the photo above is the webACE: a Fairchild ACE1101MT8
] microcontroller programmed as a Web server and containing
] two tiny web pages in its on-chip memory. Since the
] ACE1101MT8 is the smallest available microcontroller, I
] believe that this really is the World's Smallest Web
] Server.

This is the platform used in that fly article. This article is a little more informative. I don't really care about the fly. I care about the server. Links to a number of other more practical platforms such as PIC based servers (they are technically larger, but basically the idea is the same). A little digging and you'll find a number of open source TCP/IP stacks for microcontrollers.

This is of use if you want to embed internet connectivity into extremely small devices. The next question is how small can you make your bluetooth transmitter.

Tiny webserver, without the fly