First off... who is "we"? Do you have a link? Are you listed on all of the major LANParty sites? (I am just wondering...)
Are you a for profit or a nonprofit corporation? Are you a corp at all or just a bunch of guys that like to game together and now want to involve others like yourselves?
You can charge people. It is not unheard of. Most LANParties charge something because there are costs involved. Venue, power, security, prizes, etc.
Most LANs are BYOC, Bring Your Own Computer. You could have some for rent. That is one more hassle to deal with, but you can do it.
Unless you want to pay for all of the copies of the software, yes the gamers need to have the games installed on their own PCs. Now you could have a tournement area where you supply the systems and the games. That is what MML2, Million Man LAN 2, had it set up. This way you can keep track of everything. You don't have to worry about system variances if all of the systems are the same build. Cheating is basically eliminated. There are some other perks but there is also the cost of having a setup like that.
As for a connection, a simple network is all you need. No internet, no nothing. I played on a 8 system setup on a hub in a jungle city in Bolivia. So I would hope that Houston Texas is more technologically advanced than Guajara-Mirim Bolivia. You can make it as advanced or less advanced as you see fit, as your needs demand, or that your budget can support.
Live near Toronto and like to game but you can't make it to Quakecon?
<A HREF="http://www.lanmash.com" target="_new"><b>LANMash2 is the same weekend 200+ gamers!</b></A>