We present results from simulations of two flavors of dynamical overlap
fermions on 8^4 lattices at three values of the sea quark mass and a lattice
spacing of about 0.16 fm. We measure the topological susceptibility and the
chiral condensate. A comparison of the low-lying spectrum of the overlap
operator with predictions from random matrix theory is made. To demonstrate the
effect of the dynamical fermions, we compare meson two-point functions with
quenched results. Algorithmic improvements over a previous publication and the
performance of the algorithm are discussed.Comment: 16 pages, 12 figure