I'm having a little trouble finding RFID equipment that meets the performance and price requirements of this project. I'll keep looking, but in the meantime I want you all to recognize the possibility that this may be either low-range RFID (< 4in) or Bluetooth-based instead. I personally don't see Bluetooth as too much of a downgrade, and actually it would be an upgrade in some ways. It would be unfortunate for those of you who don't have a smartphone, however.

If it comes down to only being Bluetooth, Android phones would see an immediate app release. I could develop for WP7/WP8 and iOS if I could get my hands on the hardware.

I'll keep you guys posted.