My thoughts are that it should be based on 32 teams from each of 4 levels (level 9,10,11 and 12 for example) and a random draw, like round 3 of the FA Cup. This could match level 12v12, 9v9 etc and give lower level teams a chance to get through and also a giant-killing possibility if you get a 9v11 game. This should add a bit of spice to the cup and also give the higher level teams a chance to win the cup and the lower level teams good expeience of playing good teams. Currently most players aren't bothered about the cup and it is detracting from the enjoyment of the game.