Wow, average quality jumps off a cliff in this pool. At least The Extreme, You're Not Alone, and No Knowledge of Wisdom are still pretty neat.
MAIN TOURNAMENT
You Smiled Kindly (.hack//GU Volume 3) vs. No Knowledge of Wisdom (Valkyrie Profile 2) - I smirk mockingly at YSK. No Knowledge is still awesome.
You're Not Alone (Final Fantasy IX) vs. The Path is Open (Persona 3) - I tried to listen to The Path is Open three times and kept forgetting it was playing. Not like it was going to win here anyway.
The Extreme (Final Fantasy VIII) vs. Town of Tunlan (Breath of Fire) - Horrific slaughter. The good BoF1 piece is "Alan & Cerl forever" which was in last time, and perhaps some of the overworlds. Also, RC: Legend has it that speaking ill of the FF8 soundtrack will cause your current/future girlfriends to be possessed by sorceresses from the future. Don't take that chance.
Diva (Guilty Gear 2) vs. Nothing to Lose (Soul Calibur 2) - Nothing to Lose, oh really? How about this match?
Never More (Persona 4) vs. The Heart Speaks (Ar Tonelico 2) - Match of blah. I think I could like Never More in the right context - ending credits maybe? - so it beats out The Heart Speaks, which is too mellow for its own good.
Awe of She (Guilty Gear XX) vs. Leavin' Flow (Phantasy Star Online Episode 1&2) - Still not in Awe of this She. Leavin' Flow is okay.
Legends of Sillyhead (Mana Khemia) vs. To the Last Drop of my Blood (Valkyrie Profile) - Heh, I like both of these pieces, even if neither is a work of art. Last Drop needs a longer loop, but it's got some really cool touches too, so going that.
Hell's Emperor (from J.S. Bach Toccata and Fugue in D Minor) (Deathsmiles) vs. Scarlet Wind (Radiata Stories) - Scarlet Wind has a good remix in the RS arrange album, and is an example of the better parts of Idaware's style - good silly fun. Meanwhile Toccata and Fugue is a classic and my real-life ringtone (a la Phoenix Wright 2), but to some extent I'm judging Hell's Emperor on the remix, which it didn't really do much of aside from speeding it up. No fair sneaking almost straight Bach into a VG Music tournament, to me.
FAILURE BRACKET
What's Up? (Star Ocean 3) vs. Swindler - Shanghai Mood (Shadow Hearts) - What is up, indeed. (Shanghai's purpose is to musically say "CHINA!!!1!" as loudly as possible, which it succeeds admirably at.)
ANIME
My Boyfriend is a Pilot (Macross) vs. Colorless Wind (sola) - Colorless Wind is another track that sounds like they plugged in a generic percussion backbeat, but this is not exactly tough competition. Also: Is there such a thing as colored wind? "Man, the wind sure is yellow today?"
Spirale (Aria the ORIGINATION) vs. Trust You (Gundam 00 Season 2) - zzzzzzz