Thank you for all of your ideas. Unfortunately, the powers that be (becasue of influence of other facutly members) are still not buying into the idea of grading by any other means except exams/quizzes. I used to feel that this was the only objective way, and since NLCLEX is based only on exam questions, that this was the way to go. But I (along with some of my colleagues) are starting to come around to exploring other ideas.
I'm not giving up completely... yet. The literature is out there to support our cause, so in time, they'll come around