This is the total cost involved including:
* 65nm Chips (x2 per jallapeno)
* PCB Fully Assembled (just the way you see it in the video)
* Custom heatsink
* Fan
* Metal Case (Including all screws/hardware)
* PSU (with cords and wiring)
* Employee costs per unit to hand build, test, and pack (1/2Hr wage?)

I just made a thread asking this question in detail. If you would like to answer the question in detail, search for the topic by the same name as this poll.

There was a video posted this week showing a jallapeno being torn down to basic parts:
http://www.youtube.com/watch?v=ciwfCqP8AiU

Thanks for your answers everyone!