Does it work? See above. You know. The Monkey Island game running directly above this text. Did you realize when you opened Joystiq this evening that you'd be clicking your way into the future?
[Update: We mistakenly called the service "Gaikai-powered," which is inaccurate. Gaikai will provide some limited functionality in certain use cases; however, the embedded game above uses InstantAction's "chunking" technology to feed the actual executable to your computer. How and when will Gaikai be used? Look for our interview with InstantAction CEO Louis Castle later today.]