I wrote about gadgets for Windows Live about a week and a half ago. Today a friend of mine [thanks Daryll!] pointed me to a gadget creation starter kit for use with the Visual Wed Developer Express Edition. The gadget starter kit and the article that describe it are here. Take a look at it and if you have students who are interested in creating some gadgets this may help them get started.
The Windows Gadget community site has a lot more information about gadgets that people have already created as well as more information about how to create them. It's an interesting site to say the least.