Over at SpriteMods, [sprite_tm] realized that a microcontroller could be used as a boost converter to power itself. A boost converter steps up voltage from a battery by switching the output of a coil. First, it is tied to ground so a magnetic field can build up in the coil. It is then released as a higher voltage than the input. Normally dedicated chips do this at an incredibly high frequency, but the PWM signal from an AVR works well enough. This can be used in low-power situations where space is an issue.
[via EMSL]