The Null Device
This person is attempting to build a homemade digital Lomo camera, by grafting a Lomo lens onto a camera (an Epson Digital Rangefinder, which sounds a bit too expensive to be something to casually hack). It'd be interesting to see whether he succeeds, and whether the resulting Frankensteinian hybrid really does combine the grungy, ultra-hip Lomo look with the convenience of digital.
If there was a market for a digital camera that takes pictures that look Lomo-like, wouldn't the obvious way to do it be by adding a mode in the onboard firmware which vignettes the edges of the image and fiddles the colours? I wonder whether anyone has written a Photoshop/Gimp plug-in which "Lomo-fies" images.