From the Indonesian words for coffee (kopi) and civet (luwak), kopi luwak is a highly coveted coffee culled from the droppings of wild civets. The cat-like animals eat the the red fruit of coffee plants and expel the interior beans which humans separate out - by hand - from the civet dung. The beans are then shipped to gourmet food shops around the world, where they sell for upwards of $600 per pound.
Apparently, a civet's digestive system removes some of the caffeine and bitterness from the coffee, making for a smoother cup of joe. For more info, check out this LA Times article by Paul Watson.
Interested in buying some kopi luwak? You can order on-line at www.buy-kopi-luwak.com.
Another name for kopi luwak.