The Reader team is hoping to have a student intern or two this coming summer. We're fast moving and always have more ideas than manpower, so an internship can be quite rewarding as far as the "working on real stuff" factor goes. For example, our intern last year, Brad, worked on the subscribe and feed search functionalities of the new Reader that launched last September. You can intern in Google's New York or Mountain View offices, working on either Reader's frontend/UI or backend.
If you or anyone you know is interested in this internship, contact me at
mihai at persistent dot info. This page also has more general information about interning at Google.