I got a nexys2 (nice board with FPGA, cypress FX2 and other chips) ; to debug the FPGA I wrote a logic analyzer that displays the stuff on a computer monitor (the board has a VGA port) with buttons for scrolling etc. But that's just an afternoon project, for a third year project you need a little more !
Here's a screenshot (lol). As you can see I didn't want to waste some RAM to store the signal names, no problem.