You can do the project alone or with a partner; the project is small enough that three people is overkill.
A. Demers, S. Keshav, and S. Shenker, Analysis and Simulation of a Fair Queueing Algorithm, Internetworking: Research and Experience, Vol. 1, No. 1, pp. 3-26, 1990.
You should read this paper when you get to the fair queueing part of the project. The goal is to give you experience exploring ideas from a research paper in your own work, something you'll do more extensively in the final project. For those who find fair queueing interesting, another (optional) excellent recent paper is:
I. Stoica, S. Shenker, and H. Zhang, Core-Stateless Fair Queueing: Achieving Approximately Fair Allocations in High Speed Networks, Proc. ACM SIGCOMM, Vancouver, Canada, September 1998.