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I want to go to space!! But I'm seriously unclear on exactly what I'm supposed to be building here...
You should build the coolest project you can think off. I highly doubt that a simple laser cut alarm clock is going to get you very far in this contest.
> Residents of these area are specifically excluded from entry: Italy, Quebec, Cuba, Iran, Myanmar, North Korea, Sudan, Syria

Seriously? Italy?

Our law is a clusterfuck :)

See http://www.slideshare.net/Promosfera/sweepstakes-and-contest... and http://www.promosfera.it/faq_italia.php (in Italian).

This is the actual law: http://www.cr.camcom.it/files/concorsi-premio/dpr_430_2001.p... (in Italian too)

Basically, you have to have a fiscal presence in Italy, and your servers (or a mirror of them) must be here too. The assignment of the price must be done in front of a notary, and you have to take care of tax/vat as well.

What if you just send BTC? I mean, without a presence in Italy, their courts can't reach you anyways.
There are plenty of people ignoring this law, in Italy and in the world. But I'd say that a trip in the space is something a bit too big for just ignoring laws :)