Just wanted to answer some of your questions really quickly here...
Q.) How will the wining games be judged?
A.) All contest entry's will be posted on Flashportal for FP members to vote on. Those games which recive the highest rating will be judged on a criteria of animation, coding, sound, gameplay and fun factor.
Q.) Why is the topic name confusing? 1st place is 3k not 10k...
A.) The entire contests prize value is 10k! Since any Author can win an unlimited amount of prizes the grand total that one person could win would be 10k...
Q.) Is Director (Shockwave) allowed?
A.) No, that unfortunetly is a mistake and will be changed today. The only submissions that will be rated and judged on for the contest will be (Macromedia) Flash based games...
Hope that clears some things up...
Cheers,
Snarr