This is a crosspost from http://mathoverflow.net/questions/33911/, suggested by Kevin O'Bryant. I think it's relevant here. Everything below is verbatim from the earlier post.
My favorite application of linear algebra, as introduced to me by Fan Chung, is Oddtown (which I learned about from a manuscript of Lovasz, but may not be due to him).
The $n$ residents of Oddtown love to form clubs; call the family of these $\mathcal{F}$. If $F_1$ and $F_2$ are in $\mathcal{F}$, then $|F_1|$ must be odd (this is Oddtown!) and $|F_1 \cap F_2|$ must be even unless $F_1 = F_2$ ($\scriptsize{go\;Oddtown?}$). The question is, how many clubs may these $n$ people form?
The answer (taken from Tibor Szabó's lecture notes) is this:
Let $\mathcal{F} = {F_1,\ldots,F_m} \subseteq 2^{[n]}$ be a set of clubs in Oddtown. Let $\mathbf{v}_i \in \{0,1\}^n$ be the characteristic vector of $F_i$; the $j$th coordinate is 1 iff $j \in F_i$.
Note that $\mathbf{v}_i^T \mathbf{v}_j = |F_i \cap F_j|$.
Now, $\mathbf{v}_1,\ldots,\mathbf{v}_m$ is independent over $\mathbb{F}^n_2$: if $\lambda_1\mathbf{v}_1 + \cdots + \lambda_m\mathbf{v}_m = 0$, then for each $i$ we have
$$0 \;=\; (\lambda_1\mathbf{v}_1 + \cdots + \lambda_m\mathbf{v}_m)^T\mathbf{v}_i
\;=\; \lambda_1\mathbf{v}_1^T\mathbf{v}_i + \cdots + \lambda_i\mathbf{v}_i^T\mathbf{v}_i + \ldots + \lambda_m\mathbf{v}_m^T\mathbf{v}_i
\;=\; \lambda_i
$$
Since $\mathbf{v}_1,\ldots,\mathbf{v}_m$ are linearly independent vectors over $\mathbb{F}^n_2$, $m \leq n$, and Oddtown can have at most $n$ clubs.