This project request is on hold until further notice.
I will repost the details along with a more detailed explanation of functionality once I finish configuring and setting up my site and get all the bugs worked out. (maybe a month)
Sounds line a job for esase. He produces the brutal Duels module so he has a good knowkedge of this. he has also produced our custom competition module for us so he knows what he is doing. If I were you I would pay esase to produce this.