I have started playing this new format and have had great fun with it. Most of my good friends that play magic are just casual players so this levels the playing field some what and makes for some really great old school magic games.
http://www.tptb.org/magic/formats/dragon.shtml - Guys who started the format.
http://www.starcitygames.com/php/news/expandnews.php?Article=7933 Sheldon's first Star City article on the format. He changes the rules a bit for Star City Events.
http://www.starcitygames.com/php/news/expandnews.php?Article=8063 Follow up Star City article by Jahn giving his report on the Elder Dragon highlander game from Worlds.
http://www.starcitygames.com/php/news/expandnews.php?Article=8223 Sheldon's second Article updating some Star City's Event rules
http://www.starcitygames.com/php/news/expandnews.php?Article=8377 Sheldon's Newest update. Big Star City rule changes.
We play our own version not the Star City one. My friends don't have enough non-basic lands to play highlander with land so I let them slide but I make it a bit harder on myself and play true highlander style. They are nice enough to not pull out BS like back to basic. We also felt no reason to ban the power 9. Because getting a mox on turn 15 when you all ready have a ton of mana is no help what so ever. We also allow promo card, don't really see why Alaska banned them in the first place.
We are pretty good not to using lame combos. I would say peoples decks would have to adapt as opposed to banning cards like dragon. Because if you have a player that keeps pulling cheese out his deck players should adapt with more counter spells and start taking out the player right at the beginning of each game.
We do follow Sheldon's new rule of the general starting removed from the game then allowing him to be cast when the person has the mana. I would still like to see some changes with the generals because they rarely get put to use in our games.
I like this format much better then 250. I can not stand the chaos of 250 and most places do not play it correctly due to the fact they don't play for ante for keeps which ruins the safe guard against players using good cards they wouldn't want to loose.