Another premade SoC.
This one only 1.5cm accross.
External memory control but not sure how much (16 bit but maybe with banks. it mentions 24...).
Retail £10, includes ethernet, usb, and arbitrary IO (for peripherals)

Continuing to persue FPGA options. Currently looking at actel.
They do "better" FPGAs for the purpose and more to the point an ARM core not a vendor made up one, further they do some surface mount FPGAs with more pins i.e. better for our purpose.

Further, looking into a cheap way of doing the 2 chip programming thing. If I can find a really cheap chip to do it with, maybe the lowest rated xilinx FPGA, or the cheapest ethernet enabled 8 bit proccessor I can find. it might be worth doing cost for cost as it takes away from the possiblity of the user "breaking" the in system programming capability and needing to re-image their board (might not be a possibility for them), wether we use a SoC or an FPGA.

SH