From the Rare page they say
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Must be self-motivated, creative and skilled in C/C++, with intellectual horsepower and the ability to rapidly comprehend new technologies. Also vital is the passion to make successful games and commitment to go the extra mile to do so.
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Another strong point for new grads is what you have done outside of class. What type of technologies have you learned on your own without being forced to do it.
Since they are looking for 360 development showing interest in XNA and learning that on your own would be a good example of outside the classroom learning, and the interest in learning the latest technologies. If your school has an MSDNAA subscription you can get a free creators club account too.
Microsoft XNA Game Studio Contest has a free 12 month trial offer too ($100 value) Visual Studio Express and developing for the PC is completely free though if you don't have access to any of that stuff.
Even though you probably wouldn't use XNA, it's similar to C/C++ (using C#) and shows the ability to learn new gaming libraries.
I worked a little bit for a game company. A lot of the libraries we used were custom in house tools. I'm sure rare has the same. There is no way they will expect you to know their tools. They plan on you having to learn their tools/libraries. They want to see you have the ability to quickly learn their tools though. That's what I would try to focus on demonstrating to them.