1. The "Submit" link leads to the standard submission wizard. How do you designate that this is a contest entry? The "note to moderator" section?
Yes, you submit through the wizard as usual. In the step where you select 'New Story' or 'New Chapter', there is now a huge yellow box with a big button about the contest. You click that button.
If you don't see the yellow button, that means you've already submitted something for the contest.
2. Does the rule about "no typos" mean that a single typo disqualifies the story? Or just that you want a clean story with very, very few?
3. Does it have to have sex in it? Or is a non-sex story OK too?
Initially we started by requiring sex in stories, but after many submission of no-sex stories we lifted that requirement. So 'no-sex' is now acceptable.