In recent interviews I have been asking candidates to code through some questions on the whiteboard. I don't feel I'm getting a clear enough picture of the candidates technical ability with this approach. Granted, the questions might not be good enough, maybe the interview needs to be longer, etc, but I'm wondering if a different approach would be better.

What I'd like to try is to create a simple, working project in Visual Studio and have it checked into source control. The candidate can check that code out from home/wherever and then check back in work representing their response to the assignment that I'll provide. I'm thinking that if the window of time is short enough and the assignment clear enough then the solution will be safe enough from all-out Googling (i.e. they couldn't search for and find the entire solution online). I would then be able to review the candidates work.

Has enough worked with something like this before, either to vet a candidate or as a candidate yourself? Any thoughts in general?

P.S. my first StackOverflow question - hi guys and gals.

EDIT: I've seen comments about asking someone to work for free - I wouldn't mind paying the person for their time.