I get the feeling the content of the contests were posted somewhere...
It depends. If the contests are going to be nothing more then writing contests, they should be kept in the Writing Prompts and Challenges. I have a biase on this because many subforums confuse me. >_< Besides, logically that would drive more activity towards both the normal threads in the WPaC (I am abbr. the name for the sake of my sanity) and the contests rather then having separate forums.
I'm sorry if this post made so sense whatsoever.