In the academic year 2001-2002, Pace University (New York) Computer Science and Information Systems (CSIS) students developed real-world Web and pervasive computing systems for actual customers. This paper describes the general use of team projects in CSIS at Pace University, the real-world projects from this academic year, the benefits of including real-world projects in the curriculum, and their cost in terms of the instructor load and the project development infrastructure. The benefits of the method of structuring and conducting the real-world projects were found to far outweigh the cost of providing them. The projects provide valuable systems for the customers, allow the students to develop technical and value skills, foster interdisciplinary collaboration, encourage student involvement in the university and local communities, support student and faculty research, enhance relationships between the university and local technology companies, and increase national recognition of the university. (Contains 23 references.) (Author)