I understood the concept of literate programming of a way to organize _source code_ in such a way that it 'flows' better for a human, i.e. it starts with the methods/functions/modules/blocks where you naturally would start if you were to explain your code and then on to the next method/function/module/block that you would explain. Perhaps some comments here and there to explain where to start and what are special points of interest.
I should have read the wikipedia article I suppose where it seems to be actual prose... :)
Now I am not sure I like the idea - always found well-written source code to be easier maintainable and understandable than prose...