Check out this interesting game on Facebook from Microsoft:
Match Defense

Toy Soldiers. The facebook game is a color-matching bejeweled/puzzle quest kind of game in a war game wrapping. They're also doing a Live Arcade game that's a full on 3-D realtime strat game or something but that ties into this one. Sounds interesting. The puzzle quest part is pretty fun.
Little Article about it: HERE

Edit: It's actually sorta Jewel-matching mixed with Tower defense - it's interesting. It sorta reminded me of the game you guys were gonna make in an abstract sorta way.