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There's a lot of backend logistics to work out too. You'll likely want to allow users to develop for a specific platform (with compiled languages at least), so you'll need at least a Windows and a Linux server. You might look into hosting various VMs though; I believe Microsoft's Virtual Server 2005 has a web interface for the VM (it's called the Virtual Machine Remote Console (VMRC); we use it at work, and it's pretty sweet. Pretty sure it requires IE for the client, but you basically get the VM desktop in your IE window). Using VMs would also make it slightly harder for someone to wreck your box, but you'd still have to be very careful with that (which you have to be anyways).
There'd also be legal issues to work out. If it's on your machine, do you get any rights to the work? If someone creates a virus on your machine, are you responsible for it? If your machine is hacked and someone's project is stolen, are you responsible? If (when?) you get to this stage, definitely consult a lawyer.
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