ePortfolios are an up and coming service. University of Minnesota was an early adopter and created its own system. Caravel is well-suited to this task already, since it is an easy-to-use, full-featured web creation tool. Directions this could go:
Create a site for each enrolled student at http://userID.students.yourschool.edu
Have Departments create a portfolio requirements Tab that contains department-specific guidelines and helpful information for students as they create their portfolio. Use the subscription feature to add this to students majoring or minoring in that topic.
Beef up the multimedia content capabilities of Caravel. Create a CBA that allows you to upload a movie or audio file and pass it to a streaming server (Quicktime or Real Helix)
Faculty approval mechanism. Allow a faculty member to approve a document. Approval does a checksum on the document and stores it with the document metadata. If the student modifies the document, the it becomes 'unapproved' because the checksum will no longer match.