Yipit.com aggregates Groupon, LivingSocial, and hundreds of other daily deal sites(including non-location specific ones like Woot). It will filter the deals based on your location and specific interests you have.
As someone who just finished an internship, I can provide some insight into the good and bad.
As far as a main project, I would choose something new and independent. Think of that crazy idea you've been playing around with for a while, but haven't had time to implement.
Another thing that often gets overlooked is a side project. My internship work level tended to be very cyclic. Whenever my main project was stalled for one reason or another, I had little to do(I ended up roaming through the code base). Find an incremental project for this. Bugs and small features may suffice.
Finally, recruiting. Posting on sites like this is a good start. The type of students you want will find it. Also contact the career centers or CS departments of the specific schools you like. Most have some sort of system in place. Recruiting begins in September in a lot of places.
Fresh off an internship myself, I can attest to the benefit of having a side project. Primary projects often do get hung up, and with nothing else to work on, interns are left venturing off into places unknown. Some predetermined side projects would prevent a lot of downtime, something that's vital when one only has ten or so weeks to work.
The on-demand approach is not completely eliminated. Users can still watch episodes of previously broadcast shows. I'm hoping that the show owners will be out there encouraging voters. I also thought that some statistics displayed to the user could encourage voting(consecutive weeks voting, total shows voted for, etc.)