Build a working chessboard
Perl, 211 characters
y/W/B/for@8=@1=map$_.W,split//,RNBQKBNR;@b{$_.1..$_.9}=(@$_,/2/?PW:/7/?PB:&quot;- &quot;)x8for@r=reverse 1..8;$c=join&quot;  &quot;,&quot;&quot;,a..h;do{y/a-h\n/1-8/d;/ /;@b{$',$`}=@b{$`,19};say$c;say&quot;$_ @b{$_.1..$_.8} $_&quot;for@r;say$c}while&lt;&gt;

Nothing very unusual about this first attempt, except maybe the use of a do..while loop in golf.  Uses say, so you need to run this with perl -M5.01.  The input parsing is really klugy and fragile; in particular, excess whitespace will kill it.  On the other hand, you're not constrained to use 1-8 for rows and a-h for columns, either will do.  End the program with Ctrl-C or by ending the input (Ctrl-D in Unix).
I assumed I don't need to match the whitespace in the sample output exactly — I prefer a more compact board anyway.  (I did keep the board orientation, even though flipping it upside down would save me eight chars.)  A sample game session might look something like this:
  a  b  c  d  e  f  g  h
8 RB NB BB QB KB BB NB RB 8
7 PB PB PB PB PB PB PB PB 7
6 -  -  -  -  -  -  -  -  6
5 -  -  -  -  -  -  -  -  5
4 -  -  -  -  -  -  -  -  4
3 -  -  -  -  -  -  -  -  3
2 PW PW PW PW PW PW PW PW 2
1 RW NW BW QW KW BW NW RW 1
  a  b  c  d  e  f  g  h
2f 3f
  a  b  c  d  e  f  g  h
8 RB NB BB QB KB BB NB RB 8
7 PB PB PB PB PB PB PB PB 7
6 -  -  -  -  -  -  -  -  6
5 -  -  -  -  -  -  -  -  5
4 -  -  -  -  -  -  -  -  4
3 -  -  -  -  -  PW -  -  3
2 PW PW PW PW PW -  PW PW 2
1 RW NW BW QW KW BW NW RW 1
  a  b  c  d  e  f  g  h
7e 5e
  a  b  c  d  e  f  g  h
8 RB NB BB QB KB BB NB RB 8
7 PB PB PB PB -  PB PB PB 7
6 -  -  -  -  -  -  -  -  6
5 -  -  -  -  PB -  -  -  5
4 -  -  -  -  -  -  -  -  4
3 -  -  -  -  -  PW -  -  3
2 PW PW PW PW PW -  PW PW 2
1 RW NW BW QW KW BW NW RW 1
  a  b  c  d  e  f  g  h
2g 4g
  a  b  c  d  e  f  g  h
8 RB NB BB QB KB BB NB RB 8
7 PB PB PB PB -  PB PB PB 7
6 -  -  -  -  -  -  -  -  6
5 -  -  -  -  PB -  -  -  5
4 -  -  -  -  -  -  PW -  4
3 -  -  -  -  -  PW -  -  3
2 PW PW PW PW PW -  -  PW 2
1 RW NW BW QW KW BW NW RW 1
  a  b  c  d  e  f  g  h
8d 4h
  a  b  c  d  e  f  g  h
8 RB NB BB -  KB BB NB RB 8
7 PB PB PB PB -  PB PB PB 7
6 -  -  -  -  -  -  -  -  6
5 -  -  -  -  PB -  -  -  5
4 -  -  -  -  -  -  PW QB 4
3 -  -  -  -  -  PW -  -  3
2 PW PW PW PW PW -  -  PW 2
1 RW NW BW QW KW BW NW RW 1
  a  b  c  d  e  f  g  h
^C