If during the beginning of a story confrontation, a player's character is driven insane and that was the only character they had in play, does that mean the story is now un-contested?

If you mean that characters were committed to both sides of a story, and subsequently all of one side's committed characters were removed from the story (due to insanity, destruction, or other card effects), then yes, the active player, IF he wins the skill struggle with at least one skill point, will get the uncontested success token as well. The "Uncontested" determination happens at the time of the skill struggle, not at the beginning of the story phase.

Chick

Thanks! I thought I was going mad!