I was briefly reading about Maxine which is an open source JVM implementation that written in Java. This sounds circular to me. If java requires a virtual machine to run in, how can the virtual machine itself be written in Java (won't the VM code require a VM in which to run, and so on?).
Edit: Ok, so I see I overlooked the fact that Java doesn't have to run in a VM. How then does one explain how a LISP compiler can be written in LISP? Or should this be a new question altogether?
Your assumption that Java requires a virtual machine is incorrect to begin with. Check out the project GCJ: The GNU Compiler for the Java Programming Language.