How would a canadian server make it fair for euro's and americans? I'd ping 20 euro's would ping 120. It'd be the same difference as what just happened. Also, americans/canadians have 3 servers in all atm. So it would be extremely difficult for kyuuchi to spend his time reserving servers. For him it is probably easy to make little tournaments like this with his servers as he knows the admins and can get them easy. Also, it'd probably be worth his time to have american/euro servers if it was a larger tournament and not just a mini 1v1 cup.
Now, I found it fun, didn't take much time... so i'd say once a month or once every two months. But it depends, are you planning on running other tournaments at the same time? A variety would be nice. Maybe having 2 tourny's a month? first and 3rd saturday of each month. Something like that, obviously that would be alot of work. But if you could have americans and euro's in it, it would make for the same matches without people worrying about their records. Maybe that'll make it more peacefull for everyone.