Wow! Katie Dektar made this LED matrix quilt, and she posted up plenty of process pictures showing how it all works.
I sewed the rows of the matrix by machine (by putting the conductive thread in the bobbin). They all come together in the corner where they will attach to the Lilypad Arduino.
I then sewed on 64 LEDs by hand, which took quite me quite a few movies to get through. Using the embroidery hoop makes this 10x easier.
Here is a long exposure of the quilt. You can see the LED lights glow through the batting, and the fun wrinkles in the quilt. The best part is that it is deformable and soft!
[via Fashioning Technology]