A version of this tutorial is also on my website.
Step 1: Supplies
Get your supplies. You need:
-- LilyPad Arduino main board
-- FTDI connector
-- mini USB cable
-- LilyPad power supply
-- 16 LilyPad LEDs (note: these aren't available from SparkFun yet, but will be soon)
-- 2 push button switches
-- a spool of 4-ply conductive thread
-- a digital multimeter with a beeping continuity tester. This is the one I have.
-- a garment or a piece of fabric to work on
-- a needle or two, a fabric marker or piece of chalk, puffy fabric paint, a bottle of fabric glue, and a ruler
(Available at your local fabric shop or Joann Stores.)
-- a pair of scissors
-- double sided tape (optional)
-- a sewing machine (optional)
disclosure: I designed the LilyPad, so I'll make some $ if you buy one.