Is it possible to write an OS that will fit onto a 3 ½" floppy that can then write device drivers for all the devices it discovers on the system and build itself into a fully functional and useful desktop OS? The basic intent is to start out with just a bare-bones OS that can write to a hard drive, whether this requires some hints files or not; a hint file would be one that has a listing of a particular device and its specifications.
Update 19:04 Thu Aug 17 2000:

Just to make my original thought clear: this OS writes itself. No external help, unless it be through hints files. I'd rather that not be an obnoxious point, but that's part of the challenge.

Update 20:12 Sat Oct 27 2001:

This challenge may also be construed to be Self-improving genetic programming. See also for more details.