NOVA is a 3D led screen, developed by ETH Zurich.
It has many possible application fields, and
is used for academic research in the area of human computer interaction for the development of 2D and 3D interfaces involving visual and haptic inputs and outputs.
Read more about the project at http://novalabs.ch/
and at http://www.nova.ethz.ch/index.php
This demonstration of Baby Nova at the Shangai International Science & Art Exhibition 2009, shows acoustic audio being mapped onto 3D space.

Click to watch video
Most Augmented Reality examples have a high gadget level, showing off new technology with no added value.
With his Augmented Reality Modelling Tool Melka however approaches AR in a completely new way.

click for the demo
The innovative use of AR in this prototype certainly shows one possible road to further explore!
Reading again about the Arduino Lilypad a few days ago, I started imagining what you could do with this miniature Physical Computing platform.

the LilyPad
Leah Buechley – developer of the LilyPad – describes the LilyPad Arduino as “a set of sewable electronic components that let you build your own soft, interactive fashion.”
You could consider it a ‘subspecies’ within the Arduino range.
Leah Buechley has quite some tutorials/instructables on her website, and interesting examples like this one:

turn signal biking jacket
It might be an interesting link for the Social Textiles project, as the concept of the Lilypad centres on the combination of textiles with a communication layer or a social layer (fed by sensor input). All depends of course on the conceptual framework wherein you intend to use this Physical Computing platform.
Another interesting idea would be to have a master student - in the context of his/her masters thesis in Communication & Multimedia Design – set up a project using the Arduino Lilypad, and develop a conceptual framework + prototype exploring possible uses of the Arduino Lilypad.
Might offer quite some possibilities indeed.