We went with Drupal for our department website last year in order to give more voice to students, some of whom are online distance students, and also to make it easier for everyone to contribute to the website. Each student has their own homepage and blog, and also can contribute to wikis. The site also features a job board, calendar (both with rss feeds), room scheduling (not used at the moment), as well as group wikis, blogs, and news (which doubles as a mailing list since news is emailed out to everyone in the group).
One thing we didn't have time/budget for was to create a custom theme, so we just tweaked the newsflash theme from roopletheme instead for now.
The URL is http://itls.usu.edu/
I am in the process of upgrading the site to Drupal 6. We also conducted some usability tests that will help with the redesign.
Later this summer I'll be bundling the modules and configurations I am using (such as the job board, event/resource scheduling, group wikis and so forth) as a free download for other departments or schools to use (it will be called "Department 2.0").
I'm also teaching a beginning HTML/CSS class this summer in which we'll explore using Drupal, too, including creating a custom Drupal theme and site for the final project. All the course materials will be posted online and have an open creative commons license.