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Automatically-tested online programming exercises can be useful in introductory programming courses as self-tests to accompany readings, for in-class assessment, for skills development, and to provide additional practice for students who need it. CloudCoder (http://cloudcoder.org) is an effort to build a community based on an open-source programming exercise system (currently supporting C, Java, and Python) tightly integrated with a repository of freely-redistributable programming exercises written and used by members of the community. The goal of the project is to make programming exercises easy and free to incorporate into any programming course.
Hovemeyer et al. (Wed,) studied this question.