I do this as well for a "Network Services with Linux". Lecture notes/summaries/examples are in our course management system, as are lists of good references and resources (thanks Safari subscription!), and class time is 10 minutes of demoing how things should work when done, pointing out particularly tricky bits and what common errors are, and then the next 2-2.5 hours are lab time.
Exams are only 20% of the final grade and are "did you do the reading and know how the protocol operates in general terms" with some (10-15) true/false, multiple choice, pick multiple answers and then 4 or 5 short essay questions. Timed, but open book/open resource.
The other 80% is labs and projects - configuring & maintaining dhcp, samba, dns, LAMP stack, postfix email w/ mysql back end, etc.