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Don't they already have 1meg bios out already?
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Yes but most people split them down to 256K. Now depending on how your going to flash your chip, you may need to 1mg or a 256k BIOS. Like if you were going to flash your X2Lite using the Ozxchip Method you would need a 1mg, but from EvoX you only need a 256k BIOS.
Now I really don't think we will be seeing any BIOS over 256k for a while, this would only be needed if Microsoft decides to go nuts trying to keep people from modding their XBoxes.