It took a little work, but I finally did a major overhaul of my group's webpage. It's hard to get a good sense of how important it is to have a good webpage. My impression is that prospective students put a surprisingly large amount of weight on this, and I'm pretty sure that many others (funding agency personnel, referees, news media) do a lot of web-based background chasing, too. Nothing says "disorganized" like having a webpage that clearly hasn't been updated in four years.
My department is in the process of overhauling its webpage as well. We are very interested in increasing our applicant pool, and this certainly can't hurt (provided that it's done well, of course). Rice's big challenge is one of overall visibility, in my opinion. I just want to make sure that undergrads at the top 25 places in the country are at least aware that we have a thriving graduate program. That's easier said than done.... When I was a senior Rice was not even on my radar screen - growing up and going to school in the northeast, I just didn't think about them. Of course, the best thing to do to boost graduate applications is to do great science and make sure that people know about it, but that takes time.