Awesome. I'm going through Carry on Wayward Son right now, it's awesome.
I know someone said no song suggestions, BUT....
Walk this Way, by Aerosmith. Excellent solo, which has some really interesting fingerwork apparently.
Cliffs of Dover, by Eric Johnson (I don't even need to justify this one. You know you want to....)
Surfing with the Alien, by Joe Satriani. It's one of his most famous instrumentals, and for a good reason. Great for your fingerwork.
ANYTHING by Steve Vai. Learning his music is a great way to see intriguing ways of manipulating a guitar to produce all kinds of sounds. Steve Vai and Joe Satriani are also really good with using modal theory, so it's also a chance for you, the instructors, to show just how modal theory and different guitar concepts can fit into a song. My favorite Steve Vai songs are "For the Love of God" and "Bad Horsie," but I'd love to see instructional videos for any of his songs. (Okay, come on. You know this would be a really fun, challenging video set. :) :) )
And of course, "Sweet Child O' Mine" by Guns N' Roses.
And anything by Phil Keaggy, who is another amazing player.
Thanks so much for the help! Seriously, I tried learning Carry on Wayward Son before, and it got almost nowhere. Seeing it broken up into different bits really helped me out. I'd love to get my teeth into something more substantial, like a Joe Satch song or Steve Vai lick. Let me know. :)