Update
You can download the sources for Tom's entry at http://tomglenn.co.uk/softwaredev/teraclips-source-code-released/
I finally got round to finishing my Clipboard Utility (Been busier than expected, but managed to get a good day of hardcore coding in yesterday - since it's almost 3am now hah!).
Attached is a RAR archive (http://www.rarlabs.com - incase you don't have winrar) including a Setup executable to install TeraClips, and the full Source Code for you to peruse at your leisure.
As stated, it was developed in C# however, slight change of plan, I had to migrate it over to Visual Studio 2008 (As my laptop with 2005 on, which I was originally using, is at my Girlfriends and my PC only has 2008). Though I still only used Visual Studio 2005 features and .NET 2.0 framework (Which you will need to download and install by the way, if your machine doesn't already have it).
I feel I could have done better (And even now I'm still a bit reluctant to send this, but I'm at work tomorrow and don't want to risk forgetting to get my entry in on time :P) had I had more time to work on it (But that's my fault for not time managing better!) but I still feel it meets all the requirements set out for the Clipboard utility, and a few extras splashed in.
Win or Lose, it's been a great experience and an awesome opportunity to expand my knowledge of C# and I would like to take this time to thank you for giving me the opportunity to participate.