Muslims cannot portray God in human form
I would agree with Tunasing on principle. But I must add that it is not right for Muslims to take part in any event that shows God in human form.
No Muslim should be allowed to think of being God. It is the uniqueness of Islam as a global system that no portrayal of God as a human being is allowed. In Islam. God is God and man is man.
Thus, Muslims cannot join non-Muslims in a contest that asks them to think of what they would do if they were God. Similarly, Muslims should not think of animating their prophets by working in Walt Disney projects to develop cartoons about Christ or Moses.
Progress and modernity in Islam cannot stretch to the limits of non-Muslims' freedom. Islam has its own discipline and borders and these are a little more restrictive than non-Muslims' freedom.
For example, while Muslim women can have the same rights as non-Muslim women under a progressive reading of the Quran and Sunnah, they are forbidden to wear short skirts, as such a garment is against Islam.
Muslim men cannot wear jewellery as this is against the religion. They cannot go around dressing up as women either (unless there is such a thing as a transsexual).
My apologies for sounding like a Taliban here, but being Muslim and progressive is not the same as being non-Muslim and progressive. Islamic ways have a little more rigidity at their most progressive.
If one is too Westernised while being a Muslim, he or she unwittingly invites the fundamentalist monster to breed and multiply.
As the Pakistani joke goes, if one Muslim becomes Marilyn Monroe (MM), be prepared for another Muslim to become the Mad Mullah (MM). Each reinforces the other's existence and each cannot kill the other.

