Craft technology refers to the interweaving of computation with craft materials both new and old. This blending can take many forms, including the application of specialized software to aid in the design and construction of crafts (such as mechanical toys and paper sculpture) and in the creation of craft objects with embedded intelligence. Our particular interests lie in the educational realm - that is, we are especially interested in extending the landscape of children's craft activities

The Craft Technology Group's website features some wonderful ideas for unusal crafts (such as "Computationally Enhanced Craft Items") and great-looking shareware (such as "Software for Pop-Up Paper Sculpture"). I'm having trouble downloading the software just now, but its still more than worth a look, and you might have better luck.