I was amazed by how motivated I became by being involved in the "November Startup Sprint" back in the fall so I think a more formal program could potentially be pretty cool. I'd move away from being a "YC Reject" program to a "Hacker News Startup Co-op".

I would open it up after interviews so that those who got interviews but don't get accepted can participate.

Accomodate all groups who want to participate and don't mess with the financing at this point. The financing talk gives me kind of a "no" feeling.

Have your weekly dinners and get speakers.

Have a web site where YCR startups can promote their projects.

Schedule and hold a Demo Day. I bet you'd be able to get a few investors to drop by or else watch the videos that will go up on the YCR web site.

By banding together, I think everyone will have a really productive 3 months, get to know alot of like-minded individuals, and have a decent shot at attracting some investor interest.

I live in Ireland and wouldn't be able to participate but I think it's a great idea.