To add to that, not sure how it is with other unis or degrees, but it can sometimes take surprisingly long to find a project and supervisor (and I hear having a good supervisor > having a good project) that clicks with you. This is even more-so if there are a few people into areas that you are into and supervisors are unwilling to take on multiple students. The last thing you want to do is leave it close to the exam period and letting everything build up.
Completely agree on both points.
Plenty of potential Honours students are far too focused on the actual content of the project. Projects change year to year (plenty of supervisors don't update the blurb in the booklet) and will change through the year. Realistically, a lot of the techniques you'll use will be sufficiently general - for lots of projects you'll spend the first few months 'reagent-generating' anyway (i.e. making protein, constructs, generating cell lines). You should obviously be interested by your project, but it's one consideration among many.
Choosing a good supervisor is really, really important. Don't make the mistake that a good lecturer = a good supervisor (although you can often get a good impression of someone's general demeanour based on how they lecture). And yeah, most supervisors won't take any more then two students tops. Also keep in mind that in many labs - particularly larger labs, the person you'll be talking to day-to-day probably won't be your supervisor, it will be a postdoc or senior PhD student.
Keep in mind that there's projects available in external institutions - you aren't limited by the department you do your major in.
Choose a supervisor and a general area of research.
Some will choose the first students that come, but others will wait it out/choose nobody at all if they don't find the 'right' student for their lab and project.
I don't think I know of anyone offering a project in my dept. that is fully decided on who they want yet for next year (edit: but I don't know everyone, haha).
It's not too late but yeah, you do need to get onto it ASAP.
Yeah - it depends on the supervisor. It's not that they'll take whoever comes, but if they find a student or two that they're happy with, they might not talk to any more.
It seems to differ department to department too.