I really like these suggestions.
Knitting with licorice whips sounds really fun (although a bit sticky). You could totally make little candy scarfs or something. Adorable! (Just make sure you wash your hands before knitting.)
I'm very curious as to how knitting with chain would look. In my head, a chain I-cord would look brilliant as a necklace or bracelet. The more I think about it, the more I want to try it.
Sorry that I don't have any suggestions of my own. Everyone else's suggestions are just too awesome!