In May 2005, the Indoor Aerial Robot Competition was inaugurated. The goal of this annual event is to identify best design practices and gain insight on technical challenges facing the realization of near-Earth unmanned air vehicles. This paper describes the motivation, goals and objectives of this competition. Over the past two years, undergraduate teams from the Philadelphia-region participated from schools like Drexel, Swarthmore, Bryn Mawr, Rowan, Rutgers and Villanova. Robot design, competition highlights and lessons learned are described in this paper.