I kinda like the bonus points for the upsets, but just off the top of my head I think one point for the seed difference with the first round games starting at 2 points sounds a little more fair. I don't have excel here at home and i'm too lazy to dl open office, but I can crunch some diff point scenarios at work this week and see how it works out.

If you want the 12 over 5 to be worth the same as getting a sweet 16 winner right, then yours works. But imo it gives too much credit for picking first round upsets, which aren't always that hard to figure out. Also, if you're going to allow 5 brackets, i think $10 works better, but $15 is fine too.