Wow, been a while since I posted here... >__>
Danielsan is in, so long as he can get less than 7 delay. I've run many tournament now, and delay is rarely a problem. If you're not prepared to deal with a little lag, then stop Net Playing and go back to PS2, I say. Setting up regional brackets is a bad idea.
I'll probably end up pulling a ton of people in at the last minute, so fear not.
Brackets, I leave up to you. I feel most comfortable with pencil and paper, but people want something to look at, which is understandable. If you can get a tournament bracket that don't screw you over, I say go for it.
~LPT