Just a quick heads up in case you have been hiding under a rock..... 
Google's Summer of Code 2008 is officially on.

Full details at http://code.google.com/soc/2008/ 

Google will begin accepting student applications on Monday, March 24, 
2008! Please help spread the word and encourage all eligible students to 
apply for one of the security related projects!

OSVDB: The Open Source Vulnerability Database:
http://osvdb.org/blog/?p=231 

OSSIM: Open Source Security Information Management:
http://www.ossim.net/dokuwiki/doku.php?id=ideas 

Nmap Security Scanner:
http://nmap.org/GoogleGrants.html 

The Electronic Frontier Foundation/Tor Project:
https://www.torproject.org/volunteer.html.en#Projects 

SoC Timeline:
http://code.google.com/opensource/gsoc/2008/faqs.html#0.1_timeline