I've just started collecting coffee chaff from our
local roaster--I'm really excited about it. Despite being a "brown" for the
compost pile, it is also reputedly full of nitrogen and other nutrients. It does mat a bit, but the pieces are so small that it's easily broken up when turning the compost pile. I think if you moistened it, it would make great mulch, though I haven't tried it yet. I think it would work a bit like grass cuttings in the garden, mat up a little, but break down quickly and work well as a weed barrier when wet.
I got turned on to chaff through this article about using chaff as a substitute for pine shavings as
chicken litter! I haven't had the courage to try it yet, as my
chickens are still young and small and I worry about the possible dustiness. But I'm keeping it in mind for later when they are bigger...
http://www.motherearthnews.com/Happy-Homesteader/Coffee-Chaff-Chicken-Coop-Litter.aspx