Answers to Puzzle Contest (from the winner):

"WORD1 - KNEW
WORD2 - GNU
WORD3 - NEW"

The three words are homophones.

Winner: Al Siller, Rockville, MD

Contest Statistics: Newsletter sent to 281408 subscribers, 73 answers submitted, 70 answers correct, 95.89% accuracy. Chance of a correct answer winning: 1.43%.