The LilyPad is an arduino board that is meant to be stitched
into an item of clothing. The little pads are to be connected
to conductive thread that would run to sensors, leds, etc. elsewhere on
the clothing. There must be a ham application jut waiting for this
technology. Perhaps a wearable PSK rig with a wristwatch display.
LilyPad Arduino description from arduino.cc
Sparkfun LilyPad Arduino
Wearable + Arduino