@tptacek, I'd be interested in your thoughts on how one could adapt your methods from Matasano to, say, a startup doing web dev or to an enterprise software company. I've done some thinking based on some of your writings and the idea that the best way to test someone for suitability to do a job is to have them do the job, and haven't really come up with any good ideas.
2. Package it, with all of the assets and utilities needed to get it running with "vagrant up".
3. Carve out some feature/features from the application, and replace them with stub functionality.
4. Deliver the vagrant app and a functional spec to candidates. Have them implement the missing feature.
5. Devise a scoring rubric (unit test coverage, lines of code, algorithms used, safe/unsafe APIs, performance, whatever). Mechanically evaluate candidate submissions.
6. (Optional) Devise a 15-20 minute on-site interview component to verify that the candidate actually did the work. We didn't bother with this, and multiplied the size of our team (NCC is the largest software security firm in North America) and had 100% retention. But it's a big concern for some people.