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An excellent tool for teaching BASIC programming is the BASIC STAMP processor, available from parallax.com, or a number of other electronic distributors. The deluxe STAMP II version will perform reasonably extensive mathematical and logical operations and provides 16 direction-programmable I/O lines that allow you to interface the chip with "real world" electronic devices. For under $70 you can get the STAMP II plus a carrier board with 9 volt battery connection, a serial port plug, and space for simple interface circuitry. A complete manual describing the STAMP's operation and applications is also available. You can obtain a sophisticated BASIC editor and downloader program for free on the Parallax website, in versions compatible with either Mac or Windows machines.
I build exhibits for a local hand-on exploration museum, and have included STAMPs in a number of my exhibits. Using it is fun, hassle free, and I can't recommend it more highly. It's not blindingly fast, but for most of my applications, its performance is more than adequate.