Yahoo! News - Remains of New Species of Hobbit-Sized Human Found
"The partial skeleton of Homo floresiensis, found in a cave on the island of Flores, is of an adult female that was a meter (3 feet) tall, had a chimpanzee-sized brain and was substantially different from modern humans.
It shared the isolated island to the east of Java with miniature elephants and Komodo dragons. The creature walked upright, probably evolved into its dwarf size because of environmental conditions and coexisted with modern humans in the region for thousands of years. "