Even though blitz has a higher ranking, swk still managed to defeat SkateR and gain the #1 ranking.
The #1 rank can only taken if the existing #1 player has been defeated, resigned from ladder or has been forfeited for not responding to challenges.
Storm is so low because he accidentally went into hibernation. As the hibernation page reads, you agree to forfeit 5% of your rating to receive protection from challenges while you're away on vacation or taking a break.
(A mis-calculation had yielded a forfeit of 10%, which I have just fixed and adjusted accordingly).
I have a set of 1v1 rules stored on my hard drive at work, I would have liked to have them available at time of launch, but the launch went ahead anyway. I'll try to have it available after the weekend.