Not sure if this should be in the Off Topic section, but I figured; considering this is a project based solely on the purpose of being secure, I might as well post it here.

Just saw this and though it seemed pretty interesting, I haven't tried it myself, but perhaps there's some of you out there that might be interested.

Qubes OS 1.0 was just released yesterday, here's a description of the systems architecture from their website:

Qubes implements Security by Isolation approach. To do this, Qubes utilizes virtualization technology, to be able to isolate various programs from each other, and even sandbox many system-level components, like networking or storage subsystem, so that their compromise don’t affect the integrity of the rest of the system.

Qubes lets the user define many security domains implemented as lightweight Virtual Machines (VMs), or “AppVMs”. E.g. user can have “personal”, “work”, “shopping”, “bank”, and “random” AppVMs and can use the applications from within those VMs just like if they were executing on the local machine, but at the same time they are well isolated from each other. Qubes supports secure copy-and-paste and file sharing between the AppVMs, of course.

uses xen. You'd be better off with FreeBSD in a jail ;)

I'm yet to delve into BSD, but soon... soon! When I have a weekend to myself to read the FreeBSD handbook :P

I'll give this one a try :) Its quite good though it (as said by others here) is like the jails in FreeBSD..
But it has kde by default so yea its kinda annoying..Anyway, thanks for this one :)