In ubiquitous computing environment, many embedded computers, sensors, devices, and networks are connected for creating context-aware ubiquitous applications. We often build a smart house or a room to demonstrate such context-aware ubiquitous applications. However, the cost and time for building such a house is a barrier to the deployment of various embedded ubiquitous applications. We have developed Smart Furniture which instantaneously converts the legacy non-smart space into a smart space where location-based context-aware services, service roaming, personalized services and the connectivity to the Internet are provided. Since the Smart Furniture is equipped with embedded networked computers, sensors and various I/O devices, it can provide various services in open public and/or private space. In this talk, we will discuss the issues and future challenges in creating context-aware ubiquitous applications with Smart Furniture. We first introduce four types of Smart Furniture; a pole type, a lamp type, a mirror type, and a message board type. Then, the Smart Furniture middleware and the various types of context-aware ubiquitous applications such as a Personalized Message Board System, a Secure Library System, an Environmental Monitor System, and a Mobile TV-phone System are described. Finally, we summarize the issues and challenges in providing context-awareness, adaptability, time-space coordination, and privacy negotiation in embedded ubiquitous applications.