Searching through the forums @ AVRFreaks turned up this project devised by two Cornell students back in 2003 –
For this endeavour, we first built an input stage that will amplify the input signal, as well as bias it to 2.5V (since the ADC can only sample positive signals). The ADC (MAX1111) is controlled by the microprocessor (Mega 32) using the SPI interface which was much easier than manually configuring a port to interface with the ADC(believe me, we tried that). We set the Mega 32 to sample the input at about 12 KHz which is fast enough to meet the Nyquist requirement for analog to digital sampling. The digital effects were done using by manipulating the input (which will be discussed in the Design page) and the output is passed to a R-2R DAC to a output amplifier stage and finally, to the speaker.
Could be a lot of fun, if one was able to avoid some of the obstacles this team encountered. -Link