[shimon]

> ... or else I default into the standard class and must take a project from the industry.

What about if, instead of speculating on a business idea to implement in isolation, you found some of these industry partners, and asked them to describe something they need desperately and would pay for? If you can't do that before your proposal is due, make that research your proposal -- get familiar with the process of gathering needs and learning about a market. Deploy your team on iterating implementations, from paper sketch to running system. If you can get a customer or two to sign a non-binding letter of intent saying they'll buy your product if it does X,Y, and Z, you'll have accomplished something that's beyond most startup-oriented hackers.

[HeyLaughingBoy]

This is one of the best ideas I've seen so far!

At the very least, you'll learn something about practical development and what it takes to get a real-world project off the ground. If you can can both get a good grade and make some money, so much the better.