Thanks everyone for all the input!
Our semester is wrapping up and we have finished our selection process and our almost done with our fabrication. We have chosen two designs to build and present:
1) A small storage compartment and ipod/mp3 holder for the top tube of the bike that will be placed up against the handlebars. It will allow for some storage underneath the ipod for keys, wallet, or anything else small that you would like to store. The ipod will sit on top so the rider can see the song and make selections. The safety concern that was brought up has been our top priority. We have taken it into consideration while designing and have reached the conclusion that no matter what, people will use their ipod/mp3 player while riding, mainly during recreational use. This device will allow safer operation of the player as the rider will not have to reach into a pocket to get it out. They will be able to glance down and press one button quickly while still being able to concentrate on the path as the ipod is closer to their range of site. This device is not meant for doing complex operations while riding, the rider should stop the bike in order to do anything other than a quick button push.
2) A seat/helmet cover for commuters and students. We witnessed the need for a secure and dry place to store a helmet once the rider's destination is reached. Also, many people have covered their seats in plastic grocery bags to keep them dry if it rains/snows. We have solved this by creating a universal cover out of ripstop nylon that will cover the bike seat and helmet. The helmet is placed on the seat and this cover goes over both and locks underneath to secure it to the seat. We hope this will promote people to wear their helmets as we have witnessed many students who do not wear their helmet simply b/c they don't want to leave it by their bike unprotected or carry it with them into class.