There is a contest over on Chimera Critiques: www.chimeracritiques.com
Their contest website is: http://chimeracritiques.com/blog/?p=333#more-333
My browser hates me and won't let me use the link button.
The prize is a $20.00 gift certificate to a bookstore and a critique of your first chapter. To enter, they give you a starter sentence and you write a paragraph.
The site is pretty new and they'd like to get people to visit. They have forums for writers, blogs with writing tips, author interviews, book recommendations etc...
They've recently done an interview with Lisa McMann, author of WAKE, FADE, and GONE. You know, one of those published authors we envy so much. :-)
Speaking of enviable authors, meet Sean Farrell: http://www.byseanferrell.com/
The prize is a copy of First Contact by Evan Mandery.
His contest is also fun. There's a picture of him, and you describe in the comments what he is doing. This picture:
Good luck with both!