I agree, there is no substitute for working on a real problem together outside of the pressures of an interview room. This'll really give you an insight as to how a candidate is likely to perform within your team.
I'd have to disagree that all resumes are nearly useless though. We need some way of screening people and I think we just need to improve the resume format. Perhaps by making a tech resume more structured and uniform across candidates things could be improved. I built MightyCV with the aim of doing this - it's a resume platform with hackers in mind. I'd like to see MightyCV become a service that shepherds candidates towards producing a resume that is actually useful to tech recruiters. A MightyCV allows you to hook into the API's for HN, Github and Stackoverflow. When integration is activated this means recruiters get a useful at-a-glance overview of what people have actually been up to in the community. I'm toying with the idea of using an aggregation of these metrics to produce an overall MightyCV score. I'd then like to create a MightyCV map that resume owners could choose to place themselves on. Candidates electing to be included on the map would only appear if they had attained a certain score. It'd be a little like how down-vote privileges work here on HN, i.e. you have to earn your way on to the MightyCV map. I guess if I set the score threshold high enough then this map could become a good source of resumes within our sector that weren't entirely useless.
Also I liked the OP's suggested list of questions too:
- What's the last project you worked on at your former employer?
- Tell me about some of your favorite projects.
- What projects are you working on in your spare time?
- What online hacker communities do you participate in?
- Tell me about some (programming/technical) issues that you feel passionately about.
I'm going to give some thought to how I could incorporate these questions into MightyCV. I might even consider making them compulsory for all MightyCV owners. What do people think? Is forcing people to include something in their resume a bad idea?
Anyway, if you've read this far you might be interested in seeing what a MightyCV looks like. Here's mine: http://robeastham.mightycv.com (For those paying attention I don't think my theoretical MightyCV score would be high enough to get me on the MightyCV map at the moment. Answering SO questions is on my list of things to do in April).
If you like the look of it and want your own MightyCV then sign up for the private beta. There is a beta code and link in the first entry for experience within my resume. There are a couple of bugs I'm ironing out at the moment, mainly associated with the LinkedIn profile importer, but otherwise it's fairly robust. If you try it, I really hope you like it.