Some videos from one of the creators of the upcoming hackable/open source Chumby.
A chip-on-board (CoB) wire bonder:
Amazingly, the PCB's of modern electronic toys don't seem to have a single visible chip (although they have all kinds of smart logic and sounds samples). The chips have been replaced with little blobs of epoxy - i.e COB (silicon without the casing). I'd wondered about this when I was pulling apart one of Ellie's VTech toys a few months back.. mystery now revealed as the Chumby has the same thing.
Injection Molding:
Also pretty interesting on how the plastic casings are made.
Quality control on the modern electronics assembly line:
Its easy to take for granted all the work that must go on behind the scenes to produce something like an iPod or any other electronic gizmo. Interesting perspective on how the Chumby folks managed their quality control remotely, especially with all the recent news headlines on this topic.