I think it would be funner, rather than just me saying...this is my rp and this is how it goes...to have a general idea of what everyone thinks. Kabuto, for instance, was not a genin. Of course he was failing the chuunin exams every year in order to further his own agenda.
Mostly I don't want some bad ass coming through and wrecking the event by being too OP. However, most of the event will not be dependent upon being stronger than anyone else.
Keep in mind:
Stage 1: all that is assumed to have been completed just by signing up. Your character has already been recommended by some *cough* sensei to take the exam. Your character has already passed the grueling written exam.
Stage 2: you will go out into the world alone, to retrieve 2 items facing this challenge against the GM led events in the area. You might encounter player characters in these as yet undisclosed locations. Which would be so cool! I hope people do acknowledge that you are there and messing about. However, it would be very churlish of the player character to destroy you and ruin your chances to have passed a chuunin exam event to include in your back story one day. I hope if anyone does come out to mess with you that they do not have such a hateful thing in mind because GMs will step in to Curb stomp them. Still, a little interference/hindrance is to be expect.
Stage 3: This is the only portion of the exam where you will face off with another participant. The 1v1 match. Winners of each match will go on to do an elimination type tourney with a grand prize winner. If we have enough DP we will give out to the top three.
However...passing the exam only means completing stage 2 and stage 3, win or lose. The tourney is just for fun and bragging rights and prizes.
The idea is just to create an RP event for people to say, yes...I took a chuunin exam, rather than just having it in their bio as history or not bothering to have a history at all. And maybe create activity around the site, as well as promote your village, and get to meet new people.