Update. After experimenting with different materials we went with 5/32" mdf, available from home depot. We had the home depot guy panel saw it into 24 x 20" pieces that fit on our laser cutter (Helix 60W). There is some sticky residue left on the laser bed, and it smells bad, but it's cheap and hard enough for gears and other moving parts.
For the project, each kid gets a 2rpm 12V coffee grinder motor (found on
http://surpluscenter.com for about $4-5 each) and has to make a working clock. Emphasis on funky, original designs. They use
geargenerator.com (free) to generate gears and save them as .svg files, which they edit in Illustrator. They also browse
http://507movements.com/, a century-old archive of mechanical solutions to different problems with images that you can trace in Illustrator. We're in the middle of the project now and the kids (grades 11 and 12) are engaged. Gallery show in the cafeteria once they're done, will post.
One weak point is Illustrator - it does everything, but its learning curve makes me hesitate to use this toolchain with younger kids. Does anyone have an easier way to edit gears, design parts, trace images into vectors for output to laser?
Thanks
Josh