Just finished today, It is a Piston display of 1,024 Pixels of 2x2 blocks, thats 4,096 pistons. All of them are linked up to form 64 displays of 4x4 pixels. 

As far as i have found, this is the First Interactive piston Display Chessboard in Minecraft.

Each Display (or square) is composed of two 2x4 pixels for Black(Red in the Video) and White. I couldn't think of a proper display that could register Red pieces or white pieces and I didn't want the top player to have upside-down pieces so I devised the split squares for red and white.

My original design was 6x6 pixels or rather 12x12 pistons but after starting the wiring I realized it would be larger than the chunks that could load around the player. So we made it smaller and still had a few problems loading everything, Thats when we scraped what we had done and created the wiring to both sides of the control panel and behind the control station. As it stand you have about 1 chunk room on the left and 2 on the right not sure about behind the screen though.

All the wiring is done to a switch for Red or White, 4 Switches for your quadrant selection, and 16 switches for space selection, as well as 7 buttons for piece selection. (six pieces and one reset) Also have a Master Reset for the Entire board, as well as a set board control.

The only win Detection is the same as playing on a real board, same for cheat detection.

Check it out, Give an up-vote, Leave a comment. Let us know how we did and what we could have done better please ^^;

http://www.youtube.com/watch?v=faK2TU9JbjY

New to this forum so i hope i haven't broken any rules here or put this in the wrong section.

Edit:: Here is a Download link for the save file.
http://www.mediafire.com/?22okxyrb83zm2re

The map is Tykens test world and there a various other "failed" projects or just random stuff here and there, However there is a minecart track to take you to the chessboard.