To weigh in on the language issue, I'm a finalist for Spain. At the time of my application, my only experience with the language was three years rusty of high school Spanish. (It's been eight years since then). And a little bit of self study that mostly consisted of listening to audio CDs in my car. I was (and am) by no means fluent. On my application I said I planned to continue my self study in order to improve my Spanish before the fall.
Well, I tried that for awhile, but realized that I needed more structure to really learn. So, I ended up enrolling in a formal class at a local community college. It has been totally worth it -- I had never looked into community college classes before.. but it was only $240 and I am learning a ton. So, for those of us who'll need more commonly taught languages (Spanish, French, German, and maybe Chinese), that's a cheap option!
Part of my motivation for going to Spain is to learn the language, and I mentioned that in my application. (Also, part of my proposal involves taking language courses while in Spain.)