A bit flawed, but Good nonetheless.
I noticed this episode, though it had it's share of humourous aspects, there seemed to be more of a serious aspect to it, in spite of "Sailor Moon is a whore" jokes.
One scene I wasn't too fond of was the fight between Bartz & Cecil. It seemed far too literal, and actually very pointless for Cecil to be saying the lyrics to the entire song throughout the fight. We can figure out the similarities between the song, and the plot. There's a certain thing called subtlety. ;)
Also, you might want to try and work on choreography for upcoming fight scenes. For a good 5 minutes, it seemed like I was watching 2 sprites floating around as their weapons motion tweened against eachother...
Another point I'd like to stress is in the character's personalities. Obviously Shadow only recieved 2% of the eviction votes because he's cool. That's a given. But consider his personality in THIS episode. He's supportive, he does favours for them, defends Cecil in a argument with Rosa, and then Terra later on at his tribe camp. I really like what you've done with him. He knows he's cool and popular, but instead of making him cocky about it, you gave him a very good-hearted nature to him. He's still secretive and shadowy, but there's a valor to him that really makes the character something memorable & unique.
I think you should really consider taking this kind of action with all of the remaining characters. Sure, there are too many right now for each and everyone of them to have individual personalities, but after this eppisode, you can really begin to individualize your cast. Build a foundation of character for your characters. And try to give each character a different personality, or at least show different emotions for the characters in certain scenes so as to differentiate them.
EXAMPLE:
Let's say Terra and Rosa are 2 nice, sweet, kind people, and then hear news that, one of their friends was killed by a bear. Now, they could both be upset, but you could better emphasize that maybe one has a tougher outer shell than the other, by interpreting it through how they respond:
IE:
Rosa: "Oh no! That's horrible! How could this have happened??"
Terra: "That's awful... He was a good person too..."
See? One is very upset, while the other handles the situation better. It makes it easier for the audience to differenciate the two, and thus, make it easier to remember them. ;)
For a more particular, suggestion, you show Bartz laughing maniacally a lot, punching Fighter, "tricking" Rosa into doin' the nasty with him, and brawling a bloody brawl with Cecil. You're establishing very evil characteristics for him, and if he makes it to the next round, I suggest you run with it. REALLY make use of it. After all, what is light, without darkness? And what kind of story would this be without a villain?
I also like how Flik isn't really angry or upset that he lost the challenge. In fact, he even says "Good game" to the victor. Another oppuritunity to flesh out a character here. He doesn't have to be an overly happy kind of guy, but it's nice to see that this character isn't veangeful against the winning team. It seems he's got a fair mind, or at least something like it.
Mario's scene at Newgrounds was REALLY funny. I can see it must have taken a long time to edit those screens properly, because it looks very convincable... All I can suggest is to try and work on better dance sprites for him.
I'd go into further detail, but I'm already running out of room to type. Just keep trying harder and harder to make this a great series, and you'll have a great series in no time. :)
I vote for FIGHTER, to avoid stupid 8-Bit Theatre rip-off jokes(as they are nigh unavoidable in this day and age), and CHRONO. Don't get me wrong, Chrono Trigger was an awesome game, but without speech, there isn't much growth the character can get dramatically. Plus, I don't have the heart to vote for Faris or Megaman...
Well, here's to future episodes.
-Phantos