SOLVED. sci-fi; authored at least 20 years ago...[s]

[Jason]

A team (brightest minds, human specimens, etc.) is selected to travel to an ideal planet for colonization. The trip will take years. Given little distraction, team solves many challenges thought impossible back on earth. Upon getting in to range of their on-board telescope, team realizes they were sent to a planet that doesn't exist. A test of human ingenuity devised by authorities on earth.

[Daphne]

The Gold at the Starbow's End by Frederik Pohl, I think.

[Andy]

"Gold at the Starbow's End" is the novella form of the story - Pohl expanded it into a novel called Starburst, too.

[Jason]

Thanks!