Okay, this is looking good. Thanks to everyone, by the way, for the intelligent and fast replies - it bodes well for the game, I think.
Ferrix, that's quite a nice idea, I like it. I think Psionics and Magic will indeed be transparent, otherwise you get annoying exploits like high level Psions carrying around items that give them anti-magic shell and similar such tomfoolery. However, I'd prefer to keep UMD and UPD seperate. Both are potent skills as it is, if you combine them they'd be rather too good for my liking. Consider UPD added to the artificer, rogue, and bard skill lists though.
Gith are cool. But if you feel like Dak'kon is overshadowing you, have you considered a Githyanki? They're much neglected... I think maybe that's Dak'kons's fault too, convincing everyone that the 'Zerai are better. The 'Yanki have a lot going for them IMHO, they can be very interesting.
The FR books I own are the FRCS, the PGtF, Races of Faerun, and Faiths and Pantheons. Stuff from those sources is fine. This campaign is, indeed, 3.5.
I guess you can start working on characters now if you'd like to, though there's no rush just yet.
Character creation will be by 30 point buy, or by rolling 4d6, drop the lowest at
http://invisiblecastle.com. If you choose to roll, use your screen name precisely as it appears on these forums as your name there and post up a link to the results here so I can check you only rolled once. Any typos in the name will necessarily lead to discounted results. My policy is to allow a reroll if you come up with total stat mods of less than +5. In this case roll again with the same name and post a link to both sets of rolls. Once you've rolled, you can't choose to go with point buy, so be sure you want to take the risk. Don't forget that on top of the ability scores you roll or buy you have two level based increases.
HP will be max at first level, 1/2 max at each additional level. ECL gives you a d8 HD (but nothing else) for each level. Starting funds as per level 11 characters in the DMG - that's 66,000 gp. Coins weigh 1 lb for every 50, so you'll want to either spend it all or invest some in a bag of holding for the rest. No more than 33,000 on any one item to start with.
Leadership is acceptable.
Spellcasting Prodigy is acceptable (the new one, in the PGtF, NOT the old one).
Psionic Prodigy is also available (+2 prime Psionic requisite for the purposes of determining bonus PP).
Psionic Body is capped at +10 HP.
... and that's all the hosue rules I have off the top of my head.