I just heard on IRC that The Perl Foundation and (through collaborative agreement) The Parrot Foundation have been accepted as mentoring organizations in this year's Google Summer of Code.
I've posted a few project ideas on my blog. I'll probably post more in the coming days. There are other ideas floating around as well, and you are always welcome to propose your own.
Interested students should definitely get in touch with myself or other Parrot community members AS SOON AS POSSIBLE!!!!
Seriously, the more applicants we have, the more cool projects we can end up with and the better the summer will be. If you or somebody you know is an able coder, especially if you have experience using Parrot or hacking on it, please apply.