Our project was initially to create a computer mouse using accelerometers and the USB I2C-IO board which was operated by moving your hand in the air.
The mouse electronics would be built onto a glove.

We did build a glove with these electronics, but found that measuring acceleration from movements was far too difficult due to tilt.
Tilting your hand even the slightest bit caused more acceleration on the movement axes that even very fast hand movements.

Our project was then modified to use tilt. This has worked rather well. Our mouse can be used for both basic mousing tasks and specialized applications, like games.
The learning curve on the mouse is very steep, but the project is still very, very cool.

It has an enable so that you can type while wearing the glove without the cursor moving.
The glove itself is only knuckle length to allow for this.

The best way to actually describe how this works, though, is to watch it. A few videos are available below.

Downloads: source code directory video one video two (VERY large, 58mb) video three (large, 22mb)
Introductory Presentation Final Presentation Design Schematic