Boot directly from ISO files, using Grub 2
panticz.de
panticz.de
There is an iso-scan/filename kernel option in Ubuntu and a findiso option in Grml.
I have an operating system my friends and I have been building for the last few years, and I'm glad to see GRUB2 happen in theory, but the lack of documentation makes it really rough to actually program for.
If I really sat down and went through it, I'm sure it wouldn't be the end of the world. Unfortunately, I've got a few projects a bit higher up on the food chain right now.