Guess I'm kind of ignorant, but how would the 'Fargo' system work if you just walk off the street with your entry money and you have no rating?
Well it depends on how strict of an entry policy you have and how you use Fargo.
For example, suppose it's a 9-ball tourney, race to 3 winners, 2 losers side.
You can handicap the race by having everyone over 550 Fargo race to 4 winners / 3 losers and everyone over 625 Fargo race to 5 winners / 4 losers.
If a player is unknown then they have to race to 5 winners / 4 losers.
Or you can watch them play a practice game and evaluate them.
In most public golf tournaments you MUST have a handicap rating or else you cannot sign up. And the rating system used in golf is pretty much universal. To have something equivalent set up in pool is the best thing that can happen to pool. And the only system that is close to that today is Fargo ratings.