There's been some fascinating work in this area of artificial evolution within and outside of biology.
One issue frequently neglected by evoltuionists is that when these systems are considered it is often found that the initial set up is designed to achieve the result. When the set up is slightly changed, you don;t get the result! SO yes, the result is encoded in the intial set-up automatically.
The classic example is the 'Life' computer simulation. This simulaiton which generates non-random patterns turns out to only work from one or a handful of rules chosen out of trillions of possibilities. I had this told to me recently by an evolutionary astrophysicist collegue.
Genomes are fantastic examples of this. It looks only marginally different from a random genome and yet it will lead to a self-developing organism complete with eyes and limbs and a brain.
[This message has been edited by Tranquility Base, 09-02-2002]