as promised i asked Dubber for clarification on where your second assignment sits between 'demo' and 'prototype'...
according to the man himself:

They have to be able to communicate and demonstrate their idea through the medium of prototype.

We're looking for a realistic amount of work. It doesn't have to 
be the final product but it should be able to mimic functionality.

They don't need to have complete datasets, but moving parts should move.

so basically it should do what it's supposed to do, but only insofar as demonstrating it to someone (so for example if your database only has four entries instead of five million make sure you choose one of those when you demo it)

hope that helps people, on with the action planning!