Not bad. I prefer the save vs. save roll better, but setting DCs is better for larger numbers (i.e. a party surprising a party). In the case of just stumbling across someone around a corner, I'd just have everyone make reflex saves. The highest roll got a surprise round, then everyone roll initiative. That would help make sure a low level party isn't wiped out just by turning a corner blindly.
For the first situation (everyone failed to spot the ambush), maybe saves vs. the best Hide result of the ambushers. Most of the time, this would probably involve taking a 20, so it would still be a very high DC to beat.
For the second case (only some spot), I guess thats situational. If they can just warn everyone by shouting, signalling, etc., then probably no surprise, just intitiative. That would bring up a case of a well prepared party, where one member Spots the ambushers, then secretly signals the rest of the party (maybe a use for the inuendo skill finally!), and now THEY have a chance to surprise the ambushers.

For the first situation (everyone failed to spot the ambush), maybe saves vs. the best Hide result of the ambushers. Most of the time, this would probably involve taking a 20, so it would still be a very high DC to beat.
For the second case (only some spot), I guess thats situational. If they can just warn everyone by shouting, signalling, etc., then probably no surprise, just intitiative. That would bring up a case of a well prepared party, where one member Spots the ambushers, then secretly signals the rest of the party (maybe a use for the inuendo skill finally!), and now THEY have a chance to surprise the ambushers.
