Hi, PMK, I'll try to answer your question for the contest as best I can.
A. Required Items.
1 Sales Receit, with the name of the item in the shot so that it can be clearly interpreted as such.
2 Santa Claus.
5 Baked Ham.
7 A Nativity setup.
8 Christmas wreath.
9 Christmas tree.
11 Holiday lingerie.
12 Three gifts, wrapped.
If you have any problems or religious qualms with any of these, it would be best that you contact Ken himself directly via E-mail.
Exactly 12 different Muppets, most probably Palisades Toys figural representations but not limited to such, must appear in the entry.
If you have regular Fozzie in the entry, Patrol Bear Fozzie from S6 may not appear later in the entry. If you have three Janice figures, that'll count only towards one of the twelve different Muppets that must appear in the entry. If you're confused as to what Muppets count towards the frightful tally of twelve, a good rule of thumb is to let yourself be guided by the big bold name on the front of the package of the figures themselves.
There's a whole other talk of substitutions with hats and costumes for specific moments, but I don't fully understand it myself so it might be better to discuss that with Ken himself as well.
C. Comic Entries.
If your entry is to be done in the style of a Muppets comic, the entry must have a total of twelve individual panels.