Here is the short version. You have a narrative video that tells a story. The video needs to be under 15 minutes in length. It can be a web video, movie or whatever but it still has to tell a story.
You will be competing with YouTubers from around the world. Remember Life in A Day? Yeah, that many. You can submit your video starting in February 2nd and you have until March 31st, 2012 to upload it.
There is no entry fee. What else? You do have to be over 18 years of age to participate or whatever the age of adulthood/majority is in your country.
The Grand Prize is $500,000 U.S. and a trip to Venice. Not the California one, the one in Venice, Italy where the Venice Film Festival will be occurring at the same time.
Nice. If you want more info go check out the FAQ, and more importantly the official rules.