I just released some of the magic that goes into physical bitcoins: a generator for those little round key circles I put in my coins.
How it works:
1 - download latest Casascius Bitcoin Address Utility (either on github, or
https://casascius.com/btcaddress-alpha.zip)
2 - generate some keys
3 - print physical bitcoin inserts!
I made it so you can generate key circles with Minikeys, regular keys, or two-factor Encrypted Private Keys. Minikeys are 30 characters and fit in a single circle. Regular keys are 51 characters and two-factor encrypted ones are 58 characters, these print on a two-circle shape that you fold in half.
Each sheet gives you 8 keys, and gives you a QR code for the bitcoin address.
I added one more thing, and that's something called "confirmation codes". A confirmation code lets someone who ordered a two-factor passphrase physical bitcoin verify that the address they were given is really protected by their passphrase, without giving them access to the funds. So... I can sell a two-factor physical bitcoin with YOUR passphrase, and also give you back a "confirmation code" that allows you to independently calculate the bitcoin address that went inside your product. It allows you to prove that I didn't just give you an address of my own.
Of course, with this generator, the genie is out of the bottle, and you could create your own physical bitcoins yourself.