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I think AFI uses some sort of two-round system for their lists. People nominate 10 or 20 films each, a ballot is composed of about 400 of the most-nominated films, then maybe people rank them to determine the order of the final list? I'm not entirely sure, but it seems like a good way to do things.
I love List.
yay, fun! wilson, you realize you are on the hook for doing this every year now, because we will obviously all want to see how tastes change - individually as well as the FN as a whole