Regarding the issue of whether this software would produce consciousness if it were carried out by hand, I have to ask if you know of any other software that does what it's designed to do when it's worked out by hand rather than run on the hardware it's designed to run on.
Any known software in the world.
Here's some real C++ code.
Code:
int x = 3;
int y = x + 1;
What is the value of y? (if you don't know C, the "int" just says create an integer variable, so "int x = 3" means create an integer, call it x, and assign it the value 3.)
I don't need to compile this to get that y equals 4. I ran it in my brain, a completely acceptable substrate for this algorithm. A slightly more complex example I could just do on paper. If I was infallible and had enough time to kill , I could do any computer program in existence.
Algorithms are independent of the computing platform. That's the whole point of Turing machines - any of a class of machines that are functionally equivalent are, well, equivalent. And the human brain can compute the results of a Turing machine. It doesn't matter if the execution is done with paper and pencil, punched tape (the canonical Turing machine form), a MIMD machine, an abacus, a hand calculator, a 386 processor, a 486 processor, a MIPS processor, a Cray machine, neurons extracted from a crayfish and rewired into a Turing machine, etc. The end result, y=4, will be the same.
As to Paul, I didn't notice that you stipulate that inputs are similarly slowed down, though I think it is assumed. If so, computational theory tells us algorithms are independent of processing speed. If inputs are still real time, it is perhaps dubious that consciousness would result, since only a tiny fraction of the available real time data stream could ever be processed. But that depends on a lot of assumptions about the characteristics of the underlying algorithm.
edit: piggy, to make this clear, I could compile that real C code into 8086 assembly, convert that into fortran, the fortran into cobol, the cobol into Forth, the Forth into Lisp, the Lisp in Algol, the Algol into Visual Basic, the Visual Basic into APL, and then turn the APL into a game of Life representation (which can be made into a Turing machine), and then simulate the game of Life using paper and pencil, and I'd still get "4". Or I could stop anywhere along the way, and either compute the result with pen and paper, or compile the code and run it, and I'd get "4". All versions are computationally equivelent.