I'm not sure why this was entitled a new variation of the King's Gambit. The Muzio was first played way earlier than 1838 and the even name Muzio came from a mistranslation in 1813 of something Salvio wrote in 1723 concerning the origins of the line. Go figure.
Muzio

This is what I found in Wikipedia about the term :
"Jacob Henry Sarratt (1772 – November 6, 1819) was one of the top English chess players of the late 18th and early 19th century. Sarratt was renowned as a player and author and adopted the title "Professor of Chess" (Golombek 1977). He was the first professional player to teach chess in England (Sunnucks 1970). He introduced into England the chess rule that a stalemate is a draw, which was commonly used on the continent of Europe (Hooper & Whyld 1992). He coined with his works of 1813 and 1821 the term Muzio Gambit. He was a pupil of Verdoni and later the teacher of William Lewis and Peter Unger Williams"
I know nothing more about this than already written in this post. I always presumed "Muzio" to be a chessplayer. Has the word "muzio" any slang or folklore meaning in english, italian (latin) or any known language? My curiosity is... It must mean something, shouldn't one expect that? Mis-spelling is possible, but from what original word?

As best I understand it -
Back in the early 17th century, 1634, Salvio published his book on Paolo Boi, Il Puttino, in which he says he was shown these moves by some gentleman named Senor Mutio d'Alessandro who learned it from a frequent opponent named Geronimo Cascio. In 1813 Sarrat published his book "The works of Damiano, Ruy-Lopez, and Salvio, on the game of chess" partly based on his translation of a 1723 reprint of Salvio's book, in which he related this, but misspelled Mutio as Muzio and it's been Muzio ever since.

i was just looking at this variation in the king's gambit recently (yesterday). it seems quite fun to try out.

The hard part is to get someone to follow black's path. I play a LOT of KG's and very seldom get to play a Muzio or even a double Muzio.

A weird link:
Caïssa rediviva: or, The Muzio gambit:
http://books.google.ro/books?id=ni4VAAAAYAAJ&ots=ZaJLGRJjRu&dq=Ca%C3%AFssa&pg=PP3#v=onepage&q&f=false
All notes are those given in the text.
A New Variation of the King's Gambit
from The Philidorian, edited by Geo. Walker; vol. 1, 1838
The following mode of carrying on the attack in the King's Gambit is not to be found, as far as we are aware, in any treatise on Chess extant. Without, perhaps, being critically sound, it presents many strong features; and for power of developing a fierce attack, is no whit behind the celebrated Muzio Gambit. The specimen we present is not exclusively imaginative, but actually arose in play between two of our first amateurs.