See http://www.plusea.at/ for all kinds of wearable electronics. Gluing strips of conductive fabric is probably better than conductive glue.

How To Get What You Want by the same people has more details:

• Traces
• Conductive materials

The Arduino Lilypad is a microcontroller board designed for wearables and e-textiles.

google this one and you will find tutorials and details

Also here is a good book about making electronics click with clothes

http://harkopen.com/news/open-softwear

Hope it helps you! let us know what you acomplished :)

Xerox has just announced a silver ink for wearable and throwaway electronics. I think it's a bit early to use in your projects. The Silver Pen is an interesting idea. I don't know if it'll work!

I'm not sure how practical this would be, but screenprinting might be an option. Using a screen with a coarse mesh you can print with silver paint. You would need to do a test to make sure the paint is conducting in the way you expect. I have some articles and notes on my blog pages that might help.

Screenprinting has the advantage that you can quickly make many prints of your circuit or make t-shirts to promote your event/exhibition/party.

Here is a source for all sorts of conductive paints. http://www.lessemf.com/paint.html Some of them would probably work for painting directly on fabric.

Yet another alternative to conductive thread: wire.

wire-wrap wire (30 AWG) or magnet wire is pretty lightweight and flexible, although constant flexing will eventually make it break.

stranded wire is a bit thicker and heavier, but it will survive flexing longer.

I imagine you would lay it out in a sort of zig-zag or sinewave curve, gluing the midpoints, so that there's a bit of slack between each glue spot to allow the fabric to stretch a little.