I've worked with people who have a degree and a couple years of holding a developer job without actually being able to do software development. It's not pleasant.
When I do a technical interview, I'm mostly looking for basic skills: from a brief description of the problem with example input, ask any questions and describe the output and show what the output would be. Then write code that does what you described; any language is fine as long as it's consistent on the board. My problem is reversable, so if we have time, I ask them to write the code to go the other way.
The problem itself isn't hard, the biggest issue people have is being consistent; even after we spent a good portion of time coming up with an example output, some people do something totally different. Very ocassionally, I get someone who has real trouble with a basic for loop. Sometimes, people are having a bad day and you can tell, which is unfortunate. If they're local, you can try to get them rescheduled, but if they were flown in, that's kind of their one shot for a while.