A Raw file has to be processed in order to be viewed. This is where it gets a bit tricky: Different companies have different "raw engines". For example the new engine that comes with CS6/Lightroom 4 is different than that of say, aperture (heck, its even different than the ones in cs5.5 and LR3). SOME programs won't touch it at all upon opening, but some also do basic saturation and sharpening without you even touching it. Now, I may be wrong, but from most other photo-buffs I've spoken to, we shoot raw because we expect to do some adjustments. ESPECIALLY regarding things like White Balance and Exposure (more so the former). Does this mean its OK to just start firing off shots without thinking about a final image, of course not. In fact Its a lot more rewarding to get that great shot right out of the camera.
But I digress... I think editing is ok..to a point. For example: Basic HDR is fine (The kind I think is not ok would be the ones where everything looks fake and painted...you know the type). Same goes with basic color correction, cropping, and straightening. Heavy photoshop such as replacement of elements, rubber stamping, airbrushing..thats a no no.
Its not my contest so I am not by any means setting any rules..I'm just trying to help find a happy medium.
On a side note...its been mentioned that people have been sliding away from the contest because they are intimidated by the "Pros". To that I say...don't do that. Just submit anyway! You do realize this is voted on by forum users like yourself, not a professional panel of judges. I've seen MANY photos win that were taken with a point and shoot. Its more of the SUBJECT than the photo in these it seems..and thats great