At the end of the Spring 2010 semester, Mark and I built (and rebuilt many, many times) a small UAV. The UAV was controlled with two Arduino microcontrollers and a whole suite of sensors for measuring orientation, airspeed, and altitude. Eventually the craft was able to take off, maintain steady level flight, then descend and land gracefully! Pretty awesome project. Thanks to Prof. Dave Darmofal in the Aero-astro department at MIT for approving funding for our little (but extremely time consuming project).
Also, we mostly tested the UAV in the parking garage underneath the Stata building at MIT. Flying inside has some benefits like no wind, but some major drawbacks... watch the video for some pretty spectacular crashes.
Here's the Project Proposal.
Here's the Final Report.