Ditch the entry fee, competition and rules. Last one went bad because too many rules/guidelines like a budget that made no sense. Voting on such contests becomes more of popularity contest than anything else, hardly decides a winner which isn't needed anyway.
Set a limit on volume and make it so you have to start fresh. So no entering takes you already have running. 40g seems slightly rediculous for volume, I think most agree less than 20gallons is more along the lines of a nano. That's it really, think it be fun to see what people can create for the pure fun of it and wanting to participate. Change the name to 2012 nano build or something along those lines. People could continue to update threads for years if they feel like it and if it goes well could become a yearly tradition each year setting off a new set of nano build threads.
That is all
