We've all struggled with tangled headphones at one point or another—we've dedicated several posts to different headphone wrapping techniques—but the Berkeley Innovation student group offers their own clever and cheap solution to the common problem. Rather than requiring you to adopt a complicated wrapping technique, they use a plastic toy capsule (the kind you get for $.25 with a toy inside) to help the cord maintain its shape. The capsule-encased headphones don't tangle regardless of your wrapping method, since nothing can disturb the wrapped cord. Handy!
Solution to tangled headphone cords [Berkeley Innovation]