The CREATE USB Interface (CUI) was a project that came out of UC Santa Barbara around the same time the Arduino was being developed. It has a USB port, a PIC18F4550, and a prototyping area. It was designed to enable easy interfacing with the real would through many A/D inputs and general I/O ports. It supports both OSC and MIDI-over-USB natively. The biggest difference between the CUI and the Arduino is its USB support. The Arduino uses an FTDI chip to create a serial interface to its onboard AVR. The CUI’s PIC has native support for USB. That means you can have the CUI appear to be any USB HID device you want: keyboard, mouse, game controller, etc.
The Arduino has a friendly development environment and a large following though. CUI create [Dan Overholt] decided to add an ATmega168 to his board to get the best of both worlds, the CUIduino (scroll down). It can be programmed just like any other Arduino compatible device, but the having the CUI parent means your Arduino project can behave like a native USB HID gadget.