Instead of just fighting each other, could we have people like:

Lvl 1 Kelos Fight, where you can fight Kelos for a set amount of EXP, gold, and items if you win. There'd have to be stipulations of course, such as a level 1 couldn't kill a 20/20, and fights would have to be reasonable.

like NPC's for the RPG bataling?

exactly.

you'd need alot more RPG battle judges.

Well, for the most part these should stick to the regular formula's, and then add-ins depending on what you do, for ex:

*sets arrow on fire*
Judge: (bowman's attack +5 for turn)

or

*hides behind a tree*
Judge: (evasion +10, defence +2)

well....that was SORTA what I was thinking, but not quite.

The Challenger writes up a entire battle, with the winner and loser. A judge then reads the entire battle, and if it's good enough to thier standards, they award the prize. If it's not good enough, then they post saying 'invalid' or something of the sort, and they have to try again.

ouch, that would suck if you wrote a whole saga, and then got an...invalid.

I've been thinking, is it really fair that Trace judges ALL the battles, I mean he could rig them all in his favor. Also we should write up a set of rules with forumlas for them, like if its a large open arena then theres no way to hide bhind anything so it should be like -15 evasion. just a thought.

I didn't think Trace was allowed to participate...

We need formula's, because the way its going right now it just seems like
"DM appears out of nowhere behind SF's back and stabs him"
"SF spins around and throws DM's sword into the next millenium and stabs DM"
"DM calls back his swords and repels SF's attack"

It's literally impossible to win, no matter what you do

He could rig it in other ways, for example he hates Kip (this is just a random example) so he makes Kip get slaughtered every time.