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Joined: 03/10/2007
Here's whats been rattling around in the back of my head- how about taking the guts and wings from a plane like this one ($30 at Harbor Freight; $10 for spare wing set). It has two motors, direction control is by throttling back the right or left motor. So you get a 2 channel 27 MHz radio, two motors with PWM (hopefully, I haven't verified but since the receiver isn't potted, its possible to identify the ICs and determine the control method. A 'scope would probably do it too but I don't have that) , a 4.8V NiMH battery pack (4x AAA cell size) and a recharger. Combining two left wings root-to-root will give you one set of blades and the two rights a spare set for the opposite direction of rotation. What I like about this is that the motors, props and wings have (theoretically!) already been demonstrated to fly; reconfiguring so the airspeed and lift is coming from rotation rather than forward motion shouldn't be extremely hard (tho I have to admit, the wing tips will be moving a good deal faster than the root, so the stress pattern will be different than in forward flight. At the very least, its a starting point).
Then the trick is working out the control system. The IR system for the official Bladestar is good for indoors but useless outdoors, but the idea is that some kind of directional beacon from the controller can give the spinning Bladestar a reference point.

Here's the innards
and here's the guts plus my fearless feline assistant (Haley) and two new members of the household: