Try a spread pool. Basic idea is everyone gets a team and if the favorite covers the spread (make sure to use the same paper the day of the game, because different papers have different lines) the person goes on with that team and the owner of the losing team is out. If they don't cover and win, the person with the other team (the loser of the game) inherits the winning team and the original owner is out. It's a good pool because even though you might start with a bottom seed, it could turn into a very good team fast.
The other pool is a survivor pool (just heard about this today). The concept is to basically pick one winning team (without the spread) everday of the tourney. But you can only use each team once.
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Felix Unger talking to Oscar Madison: "Your horse could finish third by 20 lengths and they still pay you? And you have been losing money for all these years?!"
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