This low-cost project uses an 8 pin microcontroller to create an electronic pet with LED eyes and a piezo sounder voice that reacts to touch (via a push switch) and light (via a miniature LDR).
The PICAXE is a great chip, but the programming interface is a bit bizarre, using a 1/8" stereo jack. Last time we looked, breadboards didn't have stereo jacks... Good thing these adapters are available!
If you thought the PICAXE was a handy chip on it's own, try it with a bundled L293D motor driver chip! This will let you make very small and tidy motorized projects with the simplicity of the PICAXE development system!
The PICAXE Connect board lets you hook up a Digi XBee module or LocSense GPS module to your PICAXE or (using a MAX3232 chip) a computer.