eeenteresting...
Forgive me if I seem overly inquisitive...it's relevant to character design, and will almost certainly come up in play too.
re: magic - Are magically gifted and mundane people scored on the same basis? If so, it seems to put mundanes at a significant disadvantage when a 1st level wizard with a Dex of 10 has a better chance of hitting a target with True Strike than a 10th level fighter with Dex 20 and a magic bow. Normally that's balanced by making the wizard's spell a 1 shot, that uses an action, which in combat is a huge limit. But in a controlled target shooting event, it's a nonissue. Other games have similar spoilers. Neutralize or Delay Poison for drinking contests (or who could beat a 9th level druid?

), Locate Creature for fox hunt, etc etc. Of course some of this ties into the next question...
Level of participants. A big tournament like this, with noble title as prize, would logically draw some of the biggest, best, and most experienced hands in the land. What sort of competition are our 2nd levelers looking at?
Re: Warlocks [sblock=Supa-Secret-4-GM-Eye-Only-Stuff-Really-This-Means-You!]An interesting origin indeed. It raises some questions about other magicks, but I will leave those to the time they become pertinent to the game. As far as Warlock Von Warlocksalot goes, the immediate questions revolve around this idea of binding another soul. Does the outsider become part of the warlock? Does it remain separate? Is there a split personality involved? An inner voice that interacts? Emotional resonance and/or feedback? Are warlocks made by other ritualists, or do they have to perform the ritual themselves? If they're made by others, does it require consent? Do the ones performing the ritual exact a price for bestowing powers? If they do it themselves, how does one go from being a powerful mage binding outsiders to being a puny 2nd level warlock?
I have some ideas along these lines myself, but I'd like to get your interpretation before I start brainstorming too much. Thanks for your patience![/sblock]