MicroView Digital Compass
Contributors:
AGlass0fMilk
AGlass0fMilk 
Resources and Going Further
There are a many more cool projects you can make with the MAG3110 sensor. If you combine the MAG3110 with a few other sensors, you can make a variety of projects that involve location and orientation sensing.
Check out Shawn Hymel's Adventues in Science: Using a Magnetometer as a Compass and example code for ideas:
For more sensor fun, check out these other great SparkFun tutorials:
SIK Keyboard Instrument
We can use the parts and concepts in the SparkFun Invetor's Kit to make a primitive keyboard instrument.
PIR Motion Sensor Hookup Guide
An overview of passive infrared (PIR) motion detecting sensors, and how to hook them up to an Arduino.
AT42QT101X Capacitive Touch Breakout Hookup Guide
Learn how to use the simple SparkFun AT42QT1010 and AT42QT1011 capacitive touch breakout boards.
Motion Controlled Wearable LED Dance Harness
Control LEDs based on your movement using an accelerometer! Make your LEDs breathe by fading in and out when laying on the floor, turn off the LEDs when moving to your side, or make the LEDs blink in a headstand!