Sadly, yes. If you lose once, you ARE completely out. The next round starts once EVERYONE has posted their final banner/whatever.
P.S: whoever makes it to the top-cut will have to go against ME :F
Yes, you can make a contest. If you DO NOT supply your image in 24 hours due to school/inability to find the correct images, you will be given an extra 12 hours.
You don't know that for sure... we still haven't seen Shard,LM,OR bonsly's work (i'm not sure if hes even competiting) but,nonetheless, you'll do FINE! just do your best!