Computing is moving away from the desktop, permeating into everyday objects and the environments around us. Many researchers in ubiquitous computing are excited about the potential to profoundly change the way we live by revolutionizing how we interact with these objects and the information they convey. Despite the excitement, there are few successful applications. While this could easily be attributed to the immaturity of the research area, it is also a manifestation of a larger problem—the lack of coherent methods, processes or tools that assist designers in thinking about pertinent issues as they explore potential ideas and create new systems. This paper explores some of the issues and challenges that differentiate ubiquitous computing from the norm. They are organized according to the major design stages—early design, community factors, system design as well as usage factors; in order to help guide designers as they go through the rigors of creating new systems. Through a study, this paper delves into how some of these issues can manifest themselves in the systems created. Categories and Subject Descriptors: H.1.2 [Models and Principles]: User/Machine Systems—Human