See this site for Project Ideas in Microcontroller
Motors and Microcontrollers
Piezoelectric Sound Meter
Crystal Real Time Clock
Meat Thermometer with Predictive Filter
Marquee LED Array Display
USB Servo-Guided Water Squirter
Valentine's Day LED Heart
iPhone-Controlled R/C Car
Electroluminescent LCD Backlight Circuit
Digital Arithmetic with DIP Switches
Morse Code Decoder