First of all, don't forget that the contest to win a full set of BRILLIANT FALL OF GIANNA Z is open until 8pm tonight. Get on it, kids!
Also, a pal pointed out this fun-looking contest from MeeGenius:
MeeGenius* is a picture book app for the iPhone, iPad, iTouch, Google TV, and the web. They're a fast-growing company, and in addition to publishing original digital picture books, one of their goals is to become a community for children's book writers and illustrators; a place for them to get to know each other, learn more about publishing, exchange ideas, and get published online! To that end, they're launching a "Book Challenge," and are inviting writers to submit manuscripts. Here's a link to their announcement page.
My POV on contests is pretty much, don't think of it like "this is my chance to get published!" or in any way taking the place of the work you are doing toward being published in a traditional way. That would be like just playing the lotto instead of getting a job. Fun, perhaps, but not a great way to get the rent paid on time.
Personally, I think of contests like this as just pure fun. At worst, it's a bit of a timewaster - at best, it could be a neat opportunity for people looking to get into the children's book world to become involved, learn from their peers, and get exposure. Plus, looks like the prizes are pretty sweet. Good luck!
*(Although every time I see the word "MeeGenius" I have to say it in this voice...)