It's pretty straightforward as far as cheating/glitching is concerned. It isn't accepted or allowed.
Battles for PS2/Xbox have a warm up map before the next 5 maps. It is a best of five, TD on, NO AUTO AIM, 2 sec SPAWN (prevents spawn camp kills) and NO HEROES. Each map starts when 15 (8v8) players are up. 11 on 6v6, 7 on 4v4... You get the idea. This is very important cuz sometimes you get booted or frozen at the end of a map and this will prevent one team from having an unfair advantage at the beginning of each map battle.
Glitching is common on the PS2. However, you cannot do it without being noticed and that would lead to a forfeit by the team committing the offense and that player is banned from battle for a period of time. Repeat offenses get them banned from the league battles altogether.
We are currently using Sonic Army for our battles. PS2 only. Xbox has another ladder. We currently don't battle on Xbox because there servers are garbage and you cannot change the prefernces I mentioned above. Also, we play with more than the standard 200 reinforcements. Xbox is limited to that number.
Any PS2 players looking to get in to some good battles for rank or not should stop by Sonic Army and check it out. Those guys have done a great job so far and are always improving.
http://www.sonicarmy.com/