One of the things I like about LEGO movies is the fact that it's democratic, so it's something anyone can do, so I'm just as impressed with a great idea done well with the technology available (no matter how low) as I am having expensive equipment. I'm also impressed by the level of quality some people achieve, so I imagine that will be where categories come in, though I haven't finalized those, yet and am open to suggestions. Technique and creativity ought to both be recognized.
As for sex, etc., I imagine the main show will be kid-friendly, but I also run a Hueso de Perro's Grindhouse off the grid where I hope to show the mature films I get. I doubt LEGO will provide them with prizes, but I want to find a way to honor and show those at the festival as well.
As for judges, two-time Academy Award nominated "King of Independent Animation" Bill Plympton has agreed to select the Grand Prize winner from the finalists, and I expect I can get David Hand, Jr., whose father directed Bambi and was the number two man at Disney, to judge some as well. And there's me going through the slush pile.