I agree with Marcuza. Most tournaments that I know of match the top seeded player with the bottom seeded player, second seeded player to the next to last seeded player and so on and so on... As long as there is an even number of players it works out just fine without anyone sitting out.
The cinderella stories of bottom seeded players making a great run and the upset losses of big names early on are great fun. (there will be both I'm sure.)
My suggestion: When the final count is in divide it into two groups (crash and burn Group 1, Falconfab group 2, Tnt group 1...) then create the matches based on seedings highest against lowest. The ultimate winner of each group faces each other in the final.
The tournament should be hard or the thrill of winning is cheated. <- Ancient Proverb
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