Well the challenge was beat before it was ever offered. Any IT hack knows if you don't have physical security the box might as well be considered compromised.
Having said that, and I grant your loophole victory--if that makes you feel good. Let me restate a new challenge. Show me one buffer overrun that can be exploited where the physical security of the box isn't compromised.
For that we'll have to wait for the next remote buffer overflow exploit that Microsoft decides to sit on.