i think your project is a pretty good start. if you are going to code
it all by yourself, maybe even put your authentication-code into a
plugin and in the end try to exchange it with sth. like
restful_athentication, then you got your hands dirty enough to start a
serious project. depending on your personal goals you could take a few
steps into the way rails handles AJAX (prototype, ...).

in general your goals should be to:
- be able to write some basic ruby-code
- get an understanding for the way rails works and models, views and
controllers interact with each other
- work with plugins (use them and maybe write your own) and gems
- write valid html and css
- use some AJAX
- secure your application

as i see it your demo-project allows you to dive into all these
topics. everything else depends on your personal needs and plans.
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