Gifs have never been allowed in the h2h tourney.
As for file size / pixel limits, I'm not sure yet if these are going to be changed. In many ways, it's good not to have the recompressed versions of entries for something this important, because most people are not going to take the time to look at the full quality versions of all 128 entries and the recompressed versions really hide a lot of mistakes, so, often, there is luck involved in how well your entry compresses and that should not be a factor in who wins an h2h matchup...
But still, no definitive word on the file size / pixel limitations yet...

agreed, it should be the old limitations, otherwise a amazing entry could look like the back end of a bus scaled down to initial screen size.

nothing wrong with the back end of a bus I say

Dude, that's an optical illusion. If you look at that image just right, it looks like the pic is sloping down to the right at the top.
The lines!

huh
http://www.bbc.co.uk/tyne/content/image_galleries/clarky_laura_gallery.shtml?13

if you look to the right of the image, it gives the illusion of a skewed box.

Ok I have an update on file size limits:
The file size limits will be as follows: 700w x700h, 250kb max file size, No re-compression!
This a compromise between the previous, lesser h2h limits (550x600, 125kb) and the higher limits of the daily contests. The main difference is there is no need for extra clicking, you will be seeing the highest quality version on the h2h match pages

sounds great, plenty of space with 700px and 250kb

Exactly what I was thinking.

thats just spiffing

Woot! Now can you do something about my crappy imagination?

250kb much better!

get some mescalin Tofu... that will help you.

Ha! all those suckers who went and filled out predictions for the old bracket are wasting their time! Ha HA HA HA!!!!

I believe that includes you too FF...