The iso is intended for vm only (virtual box, qemu, vmware, ...). It may not work on any other real x86 machine.
Key Features
* Kernel 2.6.32.9
* Audio support for ICH AC97 and SB16
* Ethernet support
* Mouse cursor
* Persistent mode
* Some 3rd party apps updated
Details>> http://www.android-x86.org/releases/build-20100812
But the Mouse cursor is too slow to be used! as stated in the Known issues section. Looking for the next version to solve this problem.
Android-x86 is a project to port Android open source project to different x86 platforms, - Run Android on Your PC.