Yeh Ghost, just whether a person is a current or previous place holder on our PR. Basically, outside of the previous PR position holders, and the people who are on the PR now, there are about 5 or 6 regulars who would compete normally. Add to that about 8 others, and we have a fairly simple and decent amatuer bracket.
We also had a few people in our scene, and outsiders say that our PR should only have the top 5, as only the top 5 are competitve. I disagree with this also. Avoid taking away peoples goals and future achievements. For some players in the community to make it to the top 10 is something they can be proud of, and something they should look forward too, regardless of how hard or easy it is to be there.
At the most recent tournament up here (ACL), there was much more hype for the 10th place PR playoff then there was for the actual final, and I love that. A community that gets behind other players in the community is hard to achieve, but worth it in the long run.
I also recommend social gatherings, and not necessarily ones that have to discriminate by age, but that is acceptable in some cases for obvious reasons. We had a big group of us go out to korean BBQ and pancake mana during ACL, and I have no doubt you have all seen the laser skirmish organisation haha. We all play TCG's during the tournaments as well as gamecube side games, which only adds to the atmosphere. (Blade almost beat everyone up here at Soul Calibur 2, and it was amazingly hype).
The biggest thing I think I can say is, don't let people outside your scene dictate what is right and wrong, I agree some discussion on certain aspects need to be universal, like the majority of rules etc. But it's most important to bring together a tournament structure that everyone in your scene is happy with and enjoys.