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Re:Ruby Arduino Development by angusgr on Sunday July 17, 2011 @11:24PM (#2774977)
Check out Python-on-a-chip, p14p: http://code.google.com/p/python-on-a-chip/

Similar idea, although the VM in this case runs on the micro. Last I looked Arduinos had not enough RAM, but some similar boards like Teensy++ did (I actually contributed a proof-of-concept Teensy++ port.) However since then apparently lots of RAM-size optimisations have been added.

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