Here's a piece of advice from actual experience (from both sides): Invest your time studying for interviews than wasting time building side projects if you're doing this purely for getting a job, period. In my experience, companies don't care about your little side project when hiring--that is, unless your "little side project" had some huge impact or is something they have been aware of--the best you could get is "h…
This is highly dependent on the company you're applying to. The world is bigger than GooBookHooSoft. I've worked for a lot of companies that don't do any of that "grill you on Algorithms 101" stuff, and are far more interested in a demonstrated ability to build something.
OTOH, it certainly can't hurt to study the shit out of Algorithms 101, but projects will carry more weight at certain companies. I know if I were in a position to hire right now, I'd care more about projects than CS trivia.