Your project will not be evaluated on the basis of how much effort you put into it, but rather on how effective your work is. Go to the net or commercial software and find something to build on. Learn to use the relevant languages, at least to the level of proficiency required to make your point. Get the compiler, simulator, design environment, and install it. If you are already engaged in relevant research, leverage it.
Some project ideas A project based on an application follows.
JBIG2 has been finalized as a standard for binary image compression. It will likely be used by the next generation of fax machines. 909-922, May 2000. The comparison should include JPEG 2000. 636-650, Apr. 2000.