My current thoughts for the inaugural tournament (with a prize) is to do an initial round of 4 player timed matches. Each set of four people would play three matches, you'll receive 4 points for first, 3 for second, etc. At the end of the three matches, the two players with the lowest "point" totals would be eliminiated.
I think this would work well because it would allow for someone to have one unlucky game, and rather than doing them based on total score in smash, it will keep say one person from getting two final smashes in one round and ballooning their score way up to the point that the rest of the rounds don't matter.
After that initial halving of the bracket, I think we'll just do best of 3, 1 on 1, 4 stock matches all the way to the championship.
Also, I feel that at least for the initial tournament, all items and stages should be turned on. There is the least amount of room for people to complain then.
Also, I think that NWR staffers will participate, but the highest ranked NON-staffer will win the prize.