Today while playing and going to different tourney rooms. I kept seeing the same name in more than one room at the same time. How would one go about reporting this since its obviously farming and where?

You will want to first take a screenshot (that's the "Prt Scr" button on your keyboard)
Now the image will be on your clipboard
Go to a program like Paint, GIMP, photoshop and paste in the image
You should see a shot of what your monitor showed you
Then save the image and upload it to a site like imageshack.com
Take the direct link of the photo and either PM a GM/Smod with the photo
or
Go into #support and post it there

If you see something going down in the forums, however, there's a report button underneath the "achievements" button under everyone's avatar.

You're allowed to play in other servers at the same time.
As long as the person isn't in that same server more than once, this isn't a punishable offense.