http://www.viatech.com/en/initiatives/spearhead/mini-itx/Mini ITX, fanless motherboard is where it starts. OR, you can go the less expensive way:
Use a small form factor Mini ATX, (biostar) motherboard, and then buy a "CF to IDE adapter". This adapter has a slot for a CF card, but has regular IDE connections. This makes your CF card look like a hard drive. If it's 2 gig or more you can install XP directly on it. If it's smaller, you will need to install it first on a regular hard drive then mirror, ghost, that hard drive to the CF drive installed as a slave. Once the partition is copied over you can remove the hard drive and install the CF drive as the master.
There are some programs out there like
www.litepc.com. That will allow you to pear down the XP foot print to about 700 meg.
Having everything in one place is really nice, however the con is that everything is tight. Replacement of parts isn't so fun.