Two magazines that might give you some ideas are:
Circuit Cellar Ink, and
Elektor.
http://www.circuitcellar.com/
http://www.elektor-electronics.co.uk/
If nothing else, look at the adverts, as you'll probably see things to get your mental juices going.
Failing that, here are some ideas:
Idea 1: An NTP server with GPS receiver.
GPS is essentially a glorified clock, sending out signals that are basically "at the sound of the tone, the time will be..." and calculating from several of those signals where one would have to be, for all of those signals/waves/messages to be true. If you don't care about position and velocity, then you can get by with a single receiver. Microwaves, spread spectrum, kalman filtering. Broadcom might let you have some eval chips, I don't know if they do eval kits anymore.
NTP is a protocol to help computers synchronize. It handles a number of issues that most folks don't know or care about. Yet if you're, say, selling stocks, when did order_X come it? [1] Many PC clocks vary by a lot, and some EQ bugs with AAs (message being something like "you must wait 98290528592034 minutes before you can use that again") were caused by players not setting their PC clocks to the same day/month/year as Sony's servers.
Possible market: there are a number of these on the market at this time. Most sell for thousands of dollars. Get it down to a couple hundred dollars and you could probably sell lots to corporations for about $300-500.
Idea 2: Procedural [2] brass instrument.
Your engineering library should have this book. Chapter 7 talks about physical modelling of musical instruments using various algorithms. Figure 7.9 of the book (p287) is similar to fig 1 of this document [3]. Cook wrote his dissertation on some stuff like this, and is cited a bunch [4].
Other oddball links and stuffs:
http://www.music.mcgill.ca/~gary/ThePipe.html
http://ccrma.stanford.edu/marl/
http://www.music.mcgill.ca/~gary/ (if you're interested in procedural woodwind, see this guy's dissertation)
http://www.musickit.org/
http://ccrma.stanford.edu/~jos/swgt/swgt.html
Notes and digressions:
1 - Ancient chinese saying: man with one clock know what time it is, man with two, never sure.
2 - By procedural, I mean using physics (mostly evil math like 2-D transmission lines for wind/brass instruments) to model the sound of things, even things that can't be built. Plucked
3 - A maraca controller has actually been used for the Dreamcast and Wii for a single game: Samba de Amigo.
4 - I'd like a copy of it, but the only place that appears to have it online is ACM and I let my membership lapse (again). It is reference 6 in the paper just prior to note 3.