What exactly are the rules for these 500tc Tournament rooms?

How do they work?

rules are:
no flaming
no marketting I think
no cheating
no rage quiting (not official rule)
there are some

Actually, some forum rules do apply. [README]General Forum Rules

there's really no rules against marketing and rage quitting.
cheating is too obvious but i think its hard to cheat in tourneys. But I know i cheat in tourneys.
Farming counts as a rule.

I think he asks for stuff like how many users have to be in there and the likes, but I don't know those rules.

I mean like how does it run through the players and determine a winner? Because when I was in there, it was like splitting the people up into different rooms; I'd finish a fight and then the group of people I was with would completely change.

I also would like to know the difference between the rules of it's mod (not sure if it changes, but it was WushuPro or something like that) than other Wushu rooms.

This stuff is probably on the Wiki, but the damn wiki has been down for almost a month now.

Tourneys uses the Knockout Mode in playing.
Here's how it works
1) At the start, there are two players playing and i think you already know that. After they have finished playing, whoever wins will be putted on to the last queue and the one who have lost will put to spectator mode.
2) After the 1st match, the person in queue #1 and queue #2 will be the one who will fight next. And the same thing will happen after their match.
3) for short, it means every two players will be matched up and the one who will lose will be put to spectator mode until only two players are left. The one who won the last match will obviously be the champion and gets the TC.

Actually, tourney uses wushupro. Before it was wushu but now they changed it to wushupro to have more challenge in the game.

Wiki is down for sometime. I think they are fixing it.

Different rooms? - I think you're mistaken. Or something weird is going on.

Ah, what it does is have the first two in the queue battle as usual. The winner goes to the end of the line and the loser is sent to spectate. This repeats until a winner is found: there is one player, who receives the prize, and the rest have been forced into the spectators. Though, the last match won't move anyone anywhere and the second placed player can get a rematch to fight for their pride.

Just listen to people telling you what the rules are...

what is the rules in twinsword?
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anybody now??

If you mean twinswords in normal servers, its the same. If you mean the gamerules, there are gamerules listed here: ~ Custom gametypes thread ~
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The gamerules in twinsword that you are playing in MP is the gamerules of twinsword4fixed.tbm.
to see it. Go to setup > mods > twinswords4fixed.tbm > load
Then go to setup > gamerules
There you can see the gamerules of every mods.