I was actually thinking about a heads up double elimination tournament after I got home from our poker game last night. Maybe partly prompted by the heads up match that was on CNBC just as I got home, but it was in my mind before at least
I did check out the HPT link, useful info there. Especially the nice PDF of the tournament structure.
I do like the modified blinds ("slower and more skill based") posted by whitepotatoe, with the stacks "carrying over" after each round. Which doesn't give anybody an advantage, since it'll just be double what they had to start with in the previous round. It should make the final match seem a little more high stakes

Or maybe I'll just stick with the T10000 structure on HPT. Works well for us, since that's what we use as starting stacks in our tournaments now.
I guess a slightly easier payout structure for 8 people would be 3rd/4th getting their buyin back (12.5%), 2nd getting double back (25%), and 1st with the rest (50%). Works out to be close to the percentages he had, and is slightly better than the one on HPT with 3rd/4th losing money overall. I think the percentages I used are right... some half assed math I used there.
I'm thinking this sort of tournament could also be played out over a period of time, not necessarily in one night. Maybe with a match before or after our regular game, or if two players with a match scheduled both busted out of the regular, they could play it out right then. I'm going to see what the guys think at our next game later this week.
Of course, I'm pretty decent at heads up against them

(so is one other friend, it wouldn't surprise me if we ended up as the final two if we did this).