Project 1: Do some AR projects. Can use OpenCV, http://opencv.willowgarage.com/wiki/. Lots of project ideas out there.
Project 2: Put up a camera in each class and record the class to have 'OpenCourseWare' - see MIT. Of course a lot of permission to get, but would help in multiple ways. If students miss a day of class, they can catch up. Good way to evaluate teachers, or they can watch them self to improve.