Linked by Andrew Youll on Tue 5th Jul 2005 16:46 UTC, submitted by HSQLDB 1.8.0 Released
HSQLDB is the leading SQL relational database engine written in Java. It has a JDBC driver and supports a rich subset of ANSI-92 SQL (BNF tree format) plus SQL 99 and 2003 enhancements. It offers a small (less than 100k in one version for applets), fast database engine which offers both in-memory and disk-based tables and supports embedded and server modes. 
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HSQLDB is a very good product. if it is used in the correct place.
One other thing is, it is very good for unit testing RDBMS related projects. Especially with an ORM solution. you create your DB in memory, make your test and erase it.
For speed, i am not sure how is it, bu i use it with in memory and cached table modes witohut a problem. There is a performance comparison (benchmarks are evil) here. i suggest reading the comments as well.
http://jamie.ideasasylum.com/notebook/index.php?id=4