We set a date for the challenge, and everyone interested joins a chat room (possibly IRC), once there, the problem is described and the coders are to create a working model as quickly as possible.
The entries would be judged on the following criteria:
Speed - Above all, the quicker the better.
Fidelity - How closely the program conforms to the project guidelines. This is worth just as much as speed.
Portability - Not everyone is going to be using the same operating system or compiler. For judges to mark your entry, it has to compile!
Efficiency - This will not play a major role in the score... the goal is to come up with a quick solution, not come up with the most elegant/efficient solution.
The contests would take anywhere from 20 minutes to an hour of coding... judges would be on-hand to answer any questions on the current problem. These would be run frequently (maybe a few times per week) and wouldn't interfere with the main programming contests.
Anyone interested? Questions? Post...