There is already a page at the Blender Wiki that gathers all information and ideas for projects. Go there to check out the list of ideas!
This year another tool may have a project submitted to SoC aswell, which may interest a lot of Blender users. It`s YafRay! They will try to submit a project too, and one of the ideas is -> Better Yaf(a)Ray integration in Blender! If you want to know more about the participation of YafRay, visit this page.
Chris Want, who will be coordinating the effort on behalf of the Blender Foundation, writes:
I have some great news to pass on to your Blendernation readers: we have just received notice from Google that Blender will participate in the 2008 Summer of Code program! Students who would like to write code for Blender this summer can apply between March 24-31, 2008 at Google's Summer of Code website.
The Blender project "ideas page" has important information for students who would like to apply, and can be found here.
Students should note that while the ideas page provides some worthwhile project suggestions, we often find that the most exciting and successful Summer of Code contributions have been from projects that students have devised themselves.
We also have an application template that we would like students to follow when applying.
More information about Google's Summer of Code program, including deadlines and eligibility requirements, can be found in the Summer of Code FAQs.
Here's to another great summer!