Reading again about the Arduino Lilypad a few days ago, I started imagining what you could do with this miniature Physical Computing platform.

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:

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.