I just noticed this post, and I'm surprised no one has answered it--I think its because there is now a "2009 bead star" forum category, for questions about the upcoming contest, and this is the 2008 forum, dicussing the completed contest.
in answer to your question--no, this is not for any kind of beadweaving or embroidery. Read through the rules posted at www.beadstar.com and it says "All projects must be jewelry (bracelets, necklaces, or earrings)
created using stringing, crimping, basic knotting (not macramé), and
wireworking (simple loops, wrapped loops, wrapped-loop bails, jump
rings) techniques."
Erin