My DDs have done the following projects:
What bubble gum blows the biggest bubble?
Pretty cheap. We bought 4-5 different kinds of gum, she chewed a piece for 5 mins, and blew 3 bubbles. The gum with the most sugar won. She won 1st place for her grade, and 2nd place for the school overall
what food do cats prefer?
we bought 4 kinds of cat food and got some neighbors to let us feed their cats for several mornings (so we'd have a large enough sample) and measured which one got eaten more. She won 2nd place for her grade.
What drink is the stickiest?
We put a teaspoon of lots of different drinks (coke, sprite, tea, etc) on a leftover piece of our laminate floor and let them dry flat then stuck a penny in each spot and timed how long it took the penny to fall off when we tilted the board up. She won first place in her grade, and first place overall for the school.
Does a food's color affect how it tastes?
DD explained the project to her teacher ahead of time, and she let DD use the class as subjects. She colored plain milk blue, pink, and brown, and then let the students have a small taste of each and say what flavor they thought it was. (I bought tiny clear cups for the samples). It was amazing how many kids thought that brown milk was chocolate milk! She won first place for her grade, and second place overall for the school.
At our school, they want the kids to learn to use the scientific method to answer a question, not just do research to explain a phenomenon. (one kid did a really great project explaining how prisms work, but didn't place, as she didn't have a hypothesis to investigate).
DD was feeling very anti-science the year she did the bubble gum one. I told her it could be about ANYTHING that interested her. The idea is to use logic (the scientific method) to prove something true or false.
This year I'm thinking of letting her do one on which batteries last longer - I can buy some of the expensive batteries, and the cheap store brand ones, and let her play her DS until they die. I'm thinking she'll love playing video games in the name of science
Another easy one (one that won the school overall, and a 3rd grader did it!) was: Which paper towel is strongest. They used several brands of towels, got them wet, and measured how much weight they would support.
Have fun! Try to help your kid do something that's of interest to them. It can be fun, cheap, and still be a great project
(and resist the urge to help them make their display boards. I cringed at DD's imperfect titles and such, but when I went to see the fair, it was VERY obvious who did their own, and whose parents had "helped." )