I worked on designing something along these lines in a bioengineering design class I took for fun freshman year.

The idea (for us) was motivated by the work that Ram Sasisekharan had done in his lab along these lines:

http://web.mit.edu/newsoffice/2005/nanocell.html

Some food for thought: There's a lot of control that wrapping stuff in nanomaterials could offer (targeted delivery/delayed delivery)- but the issues that you run into include material compatibility (the biggest problem) and difficulty getting to especially tricky organs like the lungs.

It's really amazing how quickly cutting edge biotech trickles down to the undergraduate level.

As the son of someone who recently went through a cancer scare, I'm really excited about this stuff. I used to think chemotherapy was such a primitive therapy - flood the body with poison and hopefully it will just hurt the cancer - but this is a game changer.