I think its very admirable and selfless of you to start this competition. I haven't seen you asking for anything in return for these prizes you are putting up. You don't have to break the bank, just do what you can afford for the satisfaction you will get out of it.

Being part of a competition is good motivation to work on something (one of the reasons I joined Myrlyn's contest was because I want to learn modeling, not because I thought I'd win). Good on you for starting one!

The others are right, you'll have to think out the rules and requirements a little more. Take in all the suggestions and develop the nature of the competition before you announce the start and end dates (announcing for the third time is okay with me).

Here are some of my suggestions:

Perhaps make it a smaller contest. For example, however many levels anyone makes, just judge the first one, that way more people can enter. That way, people like me who already have other projects (plus work, social life, shopping, laundry...) can try to bang together a small game for the competition.

Contestants should have to show their WIP. This makes it more interesting for everybody and the project unfolds like in showcase.

Be more specific about what you mean by "war game."

That's about all I can think of now.

Don't give up!