I want to start an Open Source Project using Visual C# as the language of choice.

I am comfortable in VC# and am learning Java alongside it at the moment,I had a project in mind that I wanted to work on and I would generally prefer to code in VC# . I wanted to know whether it is possible to open up the source in a situation where the application makes use of the .NET Framework,can it be GPL'ed or do I have to License it under the LGPL because of it's inherent use of propriety framework or in other instance can it at all be open sourced because of it's inherent use of .NET Framework.Finally what all should I do to kick start an open source project which is community driven and can you give me a detailed outline of how a project is to be hosted,bug tracking by other developers is integrated in the project development and all the know how. Actually I wanted to start this project 2 month's back,as part of my curriculum I was asked to create a small software application in VC# and integrate it using ADO.NET with Microsoft SQL Server Backend,it somehow worked but it seems my institute took over the project as the copyright automatically shifted to them.I was thinking of another project but I didn't let it out because I wanted to work on it independently and open up it's source code,make it community driven so as to get in touch with other developers and learn team work ,handling large code base, time-driven software development and deployment and finally brushing up my skills further in VC#.One of my friends who was to assist me in this project and is an ardent supporter of propriety software's finally backed out without the knowledge of what this application was to be about once he heard that I wanted to open source it.So now I have to work on it alone during spare time and hope to get in touch with other developers to help me out with it.