Here are some links on a whole bunch of topics
Most of this stuff has already been done or is well on its way.
We could attempt to contribute original research in one of these areas.
We could work on a project that has already been done but make it open source.
We could think up our own area, like Hack an IPOD and nike +.
ROBOTICALLY CONTROLLED INSTRUMENTS
Toyota trumpet playing robot
Ragtime automated music (ragtimewest.com)
Christine Southworth bot(i)cello (http://www.kotekan.com/
REAL TIME CONTROL
cmu midi toolkit
PHYSICAL MODELING SYNTHESIS
SIGNAL PROCESSING, AND SPECTRAL SYNTHESIS
David Cope, EMI
M. Farbood and B. Schoner, Analysis and Synthesis of Palestrina-Style Counterpoint UsingMarkov Chains
OPTICAL MUSIC RECOGNITION
MUSIC SEARCH AND RETRIEVAL
PEOPLE AND PLACES
David Cope Experiments in Musical Inteligence
Barry Vercoe @ mit media lab
University of Plymouthhttp://www.iua.upf.es/mtg/
Music Mind and Machine
Brad Garton @ Columbia and Princetons labs
Ichiro Fujinaga @ McGill