Mike-
Welcome to aerobatics! As more or less of a newcomer myself, I was where you are just about a year ago. I was hooked on aerobatics, but not sure quite how to get into the contest thing. Luckily for me, I got lots of good advice along the way, including plenty from this board!The first thing to check out is the International Aerobatic Club (IAC), which (somewhat contrary to its name) organizes contests in the US. Join IAC (you'll have to join EAA, the Experimental Aircraft Association, at the same time, but that's a good deal, too). IAC has a great Web site, where you will find answers to many common questions. Then find out which local IAC chapter or chapters are near you. Get in touch with, and join, a local chapter or two (you can join more than one). IAC'ers are a great bunch, and they seem to be very welcoming of newbies!
You should get yourself a copy of the two most sacred books in contest flying- the IAC rule book ("Red Book") and the "Blue Book" containing the internationally agreed catalog of aerobatic maneuvers. Here's the place to order those books.
Do you have an aerobatic instructor? If not, there's a great list of aerobatic schools on the IAC Web site. I believe there are many to choose from in your neck of the woods.
About the competition: I've just competed in my first contest, and I can tell you it's a whole lot of fun! I have not heard of prize money being awarded at the local contests or even at Nationals, but you definitely can go for the trophies (actually they seem to be usually plaques), bragging rights, and fun! It's not a high-pressure thing, at least not at the beginner-level categories (speaking of which, the categories are, in order of increasing difficulty, Primary, Sportsman, Intermediate, Advanced, and Unlimited).
Local contests typically start on a Friday, and finish up by mid-day on Sunday, during which each competitor ideally gets three contest flights. At your first contest, you will have an experienced fellow competitor as a sort of mentor, to help guide you through the process. You'll start by registering and paying the nominal entry fee for your category. Then you'll get "teched" (airplane safety-inspected, airplane/insurance/pilot paperwork in order, etc.). IAC is very safety-conscious, and it shows in their contest safety record. After the tech inspection, perhaps you'll be able to sign up for some practice time. Or maybe the organizers need a hand here or there.
Often, some of the contest flights will take place on the first day. If so, you'll get a briefing from the contest organizers and judges outlining the location of the "aerobatic box", starting direction of the contest flights, order of flights, etc. Then it's time for the first pilot in the first category to saddle up and go! While you're not flying or getting ready to fly, there are ample opportunities to volunteer on the judges' line or elsewhere.
Well, I gotta stop for now, because I think my boss wants me to do some work or something... Feel free to ask more questions!
Tom P.