Let me try to address some of the questions. <Insert lame but legit excuse about it being late and me being tired>

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1. Can or should we create home worlds with other Faction members? 2. Can the Primary Challenge and both Secondary Challenges all be addressed in one post? 3. Should we post here, make our own threads, or will there be a separate thread for posting?
1 - You can if you like, however, we tried to make it so that you could essentially make your own solar system and be able to name your star, planet, moon, etc. The member of a faction belong to a star sector, so you could have something completely different from your team members if you like.
2 - For this month yes. Napoleon's example/entry is an acceptable one.
3 - Hmmmm....I think it would be best if every member had their separate post so that comments could be made to a specific entry. Make sure you post them in the appropriate section (Scriptorium for story, Artisan's Gallery for minifigure, Mason's Den for Moc, etc.). This might change if we find it to be easier to do another way.
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One question: does said art have to look like LEGO, or can it be realistic but based on LEGO/BF parts?
I'm going to vote that the artwork can be realistic but based on LEGO/BF parts. Not everyone can draw a Lego style.
Excellent entries btw. Re-post your entry in a separate topic in the Scriptorium and I will edit this one. Easiest way to do it is hit edit, hi-light, copy, paste. That way you don't have to retype or add the links again. You probably already know that, but others may not.
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QBlade: do you want us to all post here, or would it be easier to tell the factions apart if we posted in faction threads?
Faction threads would be cool, but then peoples comments might get lost among the other entries. We'll have to keep an eye out to see if there is a better way to do this.