Doug,
I too am a mech eng and finished at Chico a few years back. Due to the strong Mechatronic (i.e. Mechanical & Electrical) major Chico promoted, our team projects were highly encouraged to include a broader range of disciplines: mech, elect, and manufacturing.
I too had the same desires and goals you have in consideration of this endevor. I only wish now I utilized this resource at that time. My personal concept presentation was to create a more cost effective way to recreate one of these AquaController devices which has now come on the market AquaController Jr. Ended up going with a sponsered thing with my team that had nothing to do with the hobby.
Nonetheless, I see a strong push for a revolution in powerheads in the near future. Someone soon is going to capitalize on that market. Being able to take an inexpensive powerhead and modify it to yeild flow patters of $300+ powerheads is going to be big.
You already have a pretty good template of ideas going around here as well as tested versions. Many designs now come from piggyback concepts instead of true innovation. Should you put some time into it and get it approved I think you can have a sweet, inexpensive and fun project that you won't loose heart in over the course of the next year. You would just have to convince your professors.
The way I understood the project to go at our school, the fall semester was for design and construction and the spring for completion, testing, & reporting. With this network I bet should costs even get a bit high you could find some people who either have what you need for free or would gladly buy your tested device once the project is done. Be careful here as the university may have full rights over your project for reprodcution and resale. Second, you would have several people who would gladly provide a tank for you to test the flow patterns and efficencies of your device.
Anyway I got to go but wouldn't mind chatting more on this. I'll send you PM
Chris