I don't know if there are any electronics nerds out there but this reminds me of something that I saw in Make: Magazine. A man named Mitch Altman made this gadget out of a microcontroller called the Brain Machine that reminds me of Eye-Bo. It also used flashes of light and audio tones, but the difference was it had LEDs placed inside of cheap eye goggles that provided the visual entrainment, instead of a computer screen. The gadget was also battery powered and could be strapped to the head, so you can feasibly lay in bed or whatever instead of sitting up and watching a screen like Eye-Bo. I am not knocking Eye-Bo, as I have yet to try it (don't get me wrong, it sounds pretty cool!).
Warning: Some electronics know-how is required to put it together, like being able to program microcontrollers, solder, and read electrical schematics. Luckily those are all really easy to learn so I hope someone gives it a try.
Link if anyone cares:
http://archive.makezine.com/10/brainwave/