Stephanie's got a whole bunch of felting-related information, links, and examples up on her blog and she's been felting everything in sight for the past week or so now, ever since I got her a little needle-felting kit from the Make stand at SXSW.
I'm definitely not a hardware hacker. Pulling apart the innards of a Chumby does not excite me. I don't read Make. But BUG by Bug Labs looks like something I'd love to get my hands on.