Gareth at MAKE writes-
We’ve mentioned Leah Buechley on the blog before. She’s a Ph.D. student in Computer Science at the University of Colorado who does some really innovative things with soft circuits, LED clothing, and other geek couture. She writes of her most recent projects, the LilyPad: e-textile construction kit version 2.0
There is no reason for fabric circuits to mimic the look of traditional PCBs. My version 2.0 construction kit explores a new aesthetic for electronics. The e-textile construction kit was designed to empower novices to work with electronic textiles. Using the kit, you can build your own soft interactive clothing. The patches shown here, built with my iron-on circuit technique, are small, sewable computer chips. Each patch functions as a stitchable Arduino.