I started with a microprocessor based design, using PID. In the end I determined that proportional only control sufficed so I gave up when I found this kit
http://secure.oatleyelectronics.com/...6127b0d082b4e6
This board can be assembled in 2 different control methods, proportional or thermostat with hysteresis. Proportional mode is what you want to drive TEC's.
I modify the proportional gain (much more gain) to suit my needs (a single resistor change) and it works remarkably well. In the end, it works very similar to Die4chill.
This design uses 2 x opamps as an oscillator, 1 x opamp as the proportional error amp and the last opamp to mix the oscillator and error signal to produce the mosfet drive. The board will happily drive most TEC's and/or fans.