I am all for a cap on the spending. The cap would help ME! That would keep one from overspending.
I agree with what DBlain was saying about two dresses being $40 and with a minimum of $40 I don't feel that is much for our buddy. But I do think a $100 cap is reasonable.
To me the smilebox has never been an issue. But I love technology so it is not a problem. Personally, I do not have a problem with my buddy posting pictures instead. Basically it is the same thing and I think pictures would be just fine!
I also like the 5 hints idea. The last GE I just ended up confusing myself so much that I would post on threads I had already been knocked out of.

So the 5 hints would probably be a really good thing for me!
The GE can be so much fun. I think having the cap on the spending will take some of the stress out of it for members. Honestly, I think looking at what others have gotten in the past is what may be discouraging them to participate. I don't know, just my thinking. The cap might help with this.