Prototypes of physiological computing systems have appeared in countless fields, but few have made the leap from research to widespread use. This is due to several practical problems that can be roughly divided into four major categories: hardware, signal processing, psychophysiological inference, and feedback loop design. This chapter explores these issues from an engineering point of view, discussing major weaknesses and suggesting directions for potential solutions. Specifically, some of the topics covered are: unobtrusiveness and robustness of the hardware, real-time signal processing capability, different approaches to design and validation of a psychophysiological classifier, and the desired complexity of the feedback rules. The chapter also briefly discusses the challenge of finding an appropriate practical application for physiological computing, then ends with a summary of recommendations for future research.