National Geographic has a story about the discovery of a new kind of human, smaller in stature even than modern pygmies, which inhabited the island of Flores in Indonesia until as recently as 13,000 years ago.
These diminutive hominids have been designated a new species, Homo floresienses but the article does not mention the rationale for placing them in a separate taxon from modern humans. The fact that they were very small, about three feet tall, is not in itself sufficient reason for making them a separate species. Great Danes and Chihuahuas are at least as disparate in size as Homo sapiens and H. floresienses, but these dogs are both members of the same species. Usually, biologists consider two groups to be different species if members of the groups cannot produce fertile offspring, and we have no way of knowing at this stage whether H. sapiens and H. floresienses were interfertile.
At any rate, it's interesting that there have been myths and legends for centuries about tiny people having inhabited the islands in the region, but no hard evidence of it has ever been found until now. It causes one to wonder if the Irish legends of leprechauns and other ancient stories of elves might not have had some basis in pre-historical fact. Might these tiny three foot high humans have been at one time much more widespread rather than confined to just the Indonesian archipelago?