Cheyenne--
We have this at my school, and sometimes, it can be BRUTAL for small chapters. When they did it at my school, they used the rounds of parties and had women cut from 10 to 7 to 3 as in normal formal recruitment...BUT, at the end of the day, there is no quota or bid matching, so a PNM may end up with 3 bids. At my school, the smaller chapters got totally hosed in this system, and so did the PNMs, because they all went to like the same 3 houses, but those houses only had say 30 slots open total for 80 girls. In theory, it sounds great, but it can be really screwy too, and I'd advise you take a look at all of the possible ups and downs before deciding...
Good luck, and as always, if you need anything
Heather