Second snapshot is out, this one allows for fully automatic item generation using minecarts.
Reason: when you move an item from a hopper into a dispenser, but have the dispenser fire faster than the item gets moved, the item is duplicated. Using the minecarts to transfer the duplicated items back to the top of the chain allows for infinite items, in my case diamond blocks.
I put in 1 diamond block, and this was after only 4 minutes.
Originally I was trying to see how easy it was to transfer items from a holding chest to a minecart for use of my branch mine when I found the bug. So the design is rather rushed to make it automatic.
This is the diamond block pickup point where the cart picks up a few diamond blocks and send them to the top. To make the cart automatic you simply have the powered rail under it on a clock which will push it forward every now and then.
The duplication side. You can see the spot where the diamond blocks unload from the minecart, and then head into the hopper and dispenser which makes the duplicated items duplicated again. The clock I used for the dispenser is a new redstone block piston clock (the redstone block is invisible because it's so fast), the fastest in the game.
In the end, the limit is the amount you can store on the minecart system. Very bugged but pretty awesome.