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We do a similar pageant to raise money for our philanthropy. I'm sure I went to a much smaller school than you, so we usually have about 10 girls and 10 guys sign up. We narrow it down to 5 girls and 5 guys by having a change war, which raises a lot of money for us. We also charge $1 at the door, which buys you a raffle ticket for an opportunity to win a lot of prizes. We get them all donated from local area businesses so it's no cost to us.
During the pageant, we usually just have formal, casual and beach wear, and then questions and answers periodically throughout. But the talent thing sounds like a good idea.
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