Microfield Softboard demo. Would be wonderful to recreate in Flash, if possible.
Into physical computing? Check out these links:
Golan Levin makes art that looks back at you | Video on TED.com
Interactive Multitouch Display
TwitterThings: 6 Unusual Entities That Tweet
Precocious Baby Starts Twittering from the Womb
Kickbee : portfolio.menscher.com
Crossbow Solutions: Open SESAME!
the loud objects
zanyparade - funky forest
Playing with Dry Water