An impressive application of the C preprocessor is the Boost.Preprocessor library [1]. It basically implements a primitive (and bounded) version of Lisp
inside the preprocessor.
I used it once to write DSLs to define data structures, where a few lines of code were expanded to hundreds of lines of templates, (de)serialization code, etc...
[1] http://www.boostpro.com/mplbook/preprocessor.html