Some weeks ago, I emailed Flash Lite Developer Challenge team to know who EXACTLY could compete.
In their Terms & conditions, you could read
The Competition is open to everybody, both legal entities and individuals...
while in How to join, you were able to read (until some days)
The Competition is free. There are no Entry Fees. Eligibility (See TERMS AND CONDITIONS) The Competition is open only to legal entities ...
I didn't receive a reply but if you check How to join, you could see they fixed this part and so, individuals can REALLY enter the competition.
Cool ! Now I have to find an interesting project...and times ;)