Kottke points to this Beeb article on a (possibly) extinct race of 1m tall people, who used tools and must've mastered sea travel at some point. Most intriguing is the possibility that they're still around today:
The myths say Ebu Gogo were alive when Dutch explorers arrived a few hundred years ago and the very last legend featuring the mythical creatures dates to 100 years ago.
But Henry Gee, senior editor at Nature magazine, goes further. He speculates that species like H.floresiensis might still exist, somewhere in the unexplored tropical forest of Indonesia.