Droid Overlay is independent Arch Linux ARM-based GNU distribution, working without chroot in similar fation to Debian Kit and BotBrew (uses custom cross-compiled glibc and stock Android kernel). Unlike it's competitors Droid Overlay is Arch Linux-based, with Pacman as package manager of choice and makepkg-based build system. Also it is 100 times more KISS, quicker and more bug-free :)
Current release of Droid Overlay features moderate number of binary packages. It is proven to be possible to install packages from ALARM repositories, but this still needs more testing. This release aims at Arch users, who may be interested in testing Droid Overlay and providing basic feedback, regarding it's current state and desirable direction of it's developement.
Sourceforge project page (New: see screenshots!)
Project wiki
If you want to help project, read this page for list of ways to do that.
Current status: as of release 0.5 23 from 53 base packages are ported and all necessary PKGBUILDs can be found in AUR.