Thanks for your input thus far.
Right now our plan is to create a compiler for a video game system. Ideally it would include high-level commands specific to building games, such as CreateSprite, or PlaySoundEffect. However, the main goal would be to get at least SOMETHING to compile and run (with the most impressive results possible, of course :-) ) .
My idea was to target the 2600. I figured that since it is so much simpler than more modern systems, that it would easier to write a compiler for it. Do you guys have an idea for a system which would be a more ideal target? The NES perhaps? Thanks once again.