my roadmap is roughly as follows:
version 1.0
uses the 3dr radios. this was primarily a proof of concept version. it works, but I'm sure it can be improved.
version 1.5
will use xbee pro radios. the initial version will be built with perf board like version 1.0, but I have already started working on a pcb. it will use a 1s lipo or 9v battery, your choice. I've already got the schematics done, I'm just waiting for a new gps module to show up (should be here this morning). I'm experimenting with two different layouts to try to make it smaller.
the initial base station will be built with a xbee shield and the bt shield using the arduino for power. I'm still waiting for the xbee shield to come from hong kong. I should have bought another bt shield at the same time so I could have two complete systems (the 3dr and the xbee versions), but I didn't. that was a mistake. oh well.
my plan for the base station is to also create a pcb for it and put it in an enclosure. it will also run off a 1s lipo (probably the same type) or 9v and my plan is to put a lipo charger on there as well. these schematics have not been started. for now I'm sticking with the bt link to the phone as it is the most universal interface for android phones. from my research, support for usb serial adapters is limited and may require kernel drivers that aren't present in most phones. I will not root my phone in order to make this work. I'm still not super thrilled about the bt hack, but atm it is the best interface available.
version 2.0
this will be further down the road. probably xbee based depending on the performance of version 1.5. version 2.0 will be about adding sensors to the transmitter. initially I really wanted to log all this stuff, but for now I'm primarily focused on recovery. we'll see.
software development
this is the biggest issue for me as I'm not a software developer. after using the tracker in the field, it is obvious that there needs to be a bearing and range to the rocket added. right now the map shows you where the rocket is. however if you don't know where that is in relation to your position, you could still end up wandering around looking for it. you can always mark the location on the map where the rocket is and switch back to the phone's gps, but I'd like this to be more automatic.
so, if anyone out here is an android developer and would like to help, please contact me via pm. I'll provide you with the hardware for your effort.
as far as selling stuff goes, my thoughts right now would be that I would sell pcbs for you to assemble. I may expand that some and install the surface mount components, but you will still need to buy and install the radios and gps (all through hole parts). this approach would keep the cost to you to a minimum. however, this could change.
that's it for now. I'll start a new thread when the version 1.5 is up and running. that could be as soon as today. I may also start a few polls to see what others want in terms of size, power source, etc.
thanks for all the interest!