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Not Arduino (I use mainly PICs at the moment 'cos they're cheap and simple) but my current hardware project is working with my friend Felix on his Machines (music making sound art machines):

http://felixsmachines.com/

I do the electronics & programming stuff, it's an awful lot of fun. Plus I got to go to TEDGlobal for a day :)

That's pretty sweet! I thought this video was great: http://felixsmachines.com/video.html

I made a Gmail checker based on a project I did with my local hackerspace, step by step guide is below,

http://www.matthewforr.com/index.php/how_to_make_an_led_ardu...

An "Ambient Orb" clone I call "orbison": http://code.google.com/p/orbison/ And here's a video about it recorded at a Chicago Python meeting a few months ago: http://blip.tv/file/1773285