[watwut]

> we've had many people in the past who've interviewed very well but turned out to be completely incompetent when assigned to a real project.

There is absolutely nothing wrong with coding test. Timed with internet. The one that does not tests for algorithms, but for basic competency. For example, ask them to parse some data out of xml file and give them tons of time. That will check competency without being burden.

Yes, non tech managera sux at recognizing who is good programmer in discusion. But, so do programmers and technical people. It is easy to pretend competence if you read enough blogs and can project right attitudes.