I remember viewing on a documentary that when Thomas Jefferson founded
the University of Virginia it was supposed to be a "open" University
that would not necessarily give out grades or degrees.  Scholars would
come to study at UVA and when they had learned enough they would go
out into the world.  I have not been able to find any literature that
supports this our spells out this (his) intention explicitly.

PRIMARY QUESTION: Where can I read more about this / confirm his
intention? (Links, books, etc.)

SECONDARY Q?: By the way would you know the documentary that I was
watching that mentioned this?

Here are some online sources which describe the University of
Virginia, as originally conceived by Thomas Jefferson:

"In 1819 Jefferson chartered the University of Virginia. He wished it
to be a school in which no degrees were given, no attendance taken,
people would just come when they pleased, and leave when they felt
educated. A philosophy which was not carried out, yet the college was
the creation of the American public school system."

Pagewise: History
http://allsands.com/History/People/thomasjefferson_wpg_gn.htm 

"Thomas Jefferson's model of higher education, the University of
Virginia, was in its original design at least based on a different set
of assumptions. Students would select their own courses and receive no
degrees -- just confirmation that they had enrolled. No meeting
mysterious criteria for access to particular disciplines here --
students simply made their own choices from among the educational
possibilities.

It is not hard to see Jefferson's starting point as quite different
from that of traditional universities. Clearly, he saw information as
abundant, probably more than any one person could ever know. The key
was to provide opportunities for enlightened students to follow their
own intellectual path in an environment that encouraged acquisition of
knowledge and wisdom (Jefferson's library-centered Academical
Village). Unfortunately, Jefferson's theory may have been well ahead
of its time in 1819 when the University of Virginia opened. After
dealing with the rambunctious behavior of early U.Va. students, a
disappointed Jefferson and his successors gradually allowed the
institution to change toward the more common contemporary university
model. Pieces of his design, particularly the elective system, would
show up in the transformation of American higher education in the
later 1800s, but no major institution attempted to duplicate his
complete blueprint, which challenged the medieval trappings so
thoroughly engrained in university life."

University of Virginia
http://www.itc.virginia.edu/virginia.edu/spring98/revolution/p8.html

"First Year, Second Year, etc.: used instead of freshman, sophomore,
etc; when the University was first established, no degrees were given
out, therefore there was no set period of attendance; also, Mr.
Jefferson was a believer in life-long learning, and did not consider
that anyone could reach a 'junior' or 'senior' level."

The Cavalier Daily
http://www.cavalierdaily.com/CVArticle.asp?ID=4830&pid=589

I believe that the documentary which described the University of
Virginia's gradeless, degree-free beginnings was "Thomas Jefferson," a
documentary by Ken Burns, which aired on PBS. This remarkable
documentary is now available on VHS and DVD:

Barnes & Noble: "Thomas Jefferson" VHS
http://video.barnesandnoble.com/search/product.asp?ean=794054559439

Barnes & Noble: "Thomas Jefferson" DVD
http://video.barnesandnoble.com/search/product.asp?ean=794054559422

If you are interested in learning more about Jefferson and the
University of Virginia, I highly recommend Garry Wills' book, "Mr.
Jefferson's University." This is a fascinating look at Jefferson's
philosophy of education, as well as his architectural goals for the
University of Virginia.

Amazon: "Mr. Jefferson's University"
http://www.amazon.com/exec/obidos/tg/detail/-/0792265319/qid=1048819929/sr=8-1/ref=sr_8_1/103-9014181-9303865?v=glance&s=books&n=507846

Here is the combination of search terms that gave me the best results:

Google Web Search: "university of virginia" + "thomas jefferson" + "no
degrees"
://www.google.com/search?hl=en&ie=UTF-8&oe=UTF-8&q=%22university+of+virginia%22+%22thomas+jefferson%22+%22no+degrees

I hope this information is helpful. I am not absolutely certain that I
have correctly identified the documentary in which you learned of
Jefferson's educational concepts; there have been many documentaries
about Jefferson, and I rely only upon my own memory of the Ken Burns
documentary in suggesting that it may be the one you recall.

If anything above is unclear or incomplete, or if a link does not
function, please request clarification before rating my answer, and
I'll gladly offer further assistance.

Best regards,
pinkfreud

Excellent! Way to go! Not only was it right on, but it was quick as heck!

Thank you, thank you, thank you!