The dynamics of the voltage across a nerve membrane are well defined by a set of three coupled non-linear equations. MATLAB (or another tool) can be used to model these equations and accurately predict the dynamics of a nerve firing.
Make an animation (either MATLAB or web-based) of the inner ear example from class. This involved some simulation and some relatively simple graphics programming. You could also update and expand this web page (http://www.swarthmore.edu/NatSci/echeeve1/Ref/InEar/InnerEar.html) to include the animation.
Measure EMG signal and use this to control a robotic gripper.
The median frequency of the EMG (electromyogram; the electrical signal from muscle) is related to fatigue (frequency decreases as fatigue increases). Build hardware/software to measure frequency. This can be done with either analog or digital circuitry.