After the build automation post I felt like coding and decided to pick the low hanging fruit of package operations, that is being able to automatically install a package and build a package from package project.

Here's the current design:

1. Package installation
/Package_Install folder inside Sitecore installation is being watched for new files. Once the package file is dropped there, Sitecore automatically installs the package. Then the maintenance stuff like moving the file out and reporting is performed.

2. Package generation
Similar to installation, /Package_Generate is being watched for packager project files. Once the project file is dropped in the folder, Installer generates a package and places it near the project file.

The best part is that it almost works. Package generation works reasonably well, while instalation still requires a "don't-ask" package, installs it and then throws an exception - no big deal, we'll fix it. I'd like to add real webservices in future and be able to send packages over the wire, but this local version seems easier to use both manually and in automation scenarios.