The PicoBoard is a USB device that lets you turn real-world objects into input devices that can be used to control your Scratch projects.  The PicoBoard comes with a number of built-in inputs, including a slider, button and sound sensor.  It also has expansion ports that allow you to build your own objects.  For example, you could place two pieces of aluminum foil on two of your fingers and hook them up to the PicoBoard.  The system can recognize when your fingers are touching, and then react accordingly.  This has great potential in technology education classes, as well as designing simple interfaces for people with physical disabilities.

More information on the product can be found here.

The PicoBoard

The PicoBoard

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