I think
a) that it is sweet to see that my first "idea" was not so bad after all
and
b) that seems hard to beat
and last but not least
c) that I hope to get the one or another improvement suggestion from you, even after the contest ist over and we have seen this method "in action" in the upcoming 0.9.0 testnet  

Hunterminercrafter:
Largest error: 1.89787520814

L'oracle (PM submission from 07:42:50 PM, someone can verify this in my account if wanted):
Largest error: 1.89720766492

My own one (shame on me)
Largest error: 5.31689202348

VeryNewMember:
Largest error: 5.9709180146

Here, all algorithms in zipped form. Change the first line in tester.py to evaluate a specific submission:
http://www.xup.in/dl,17161517/retarget_algorithms.tar.gz/

Does that seem correct so far?
Unbelieveable, how close the two best submissions were.

If everyone agrees with the result, I would need loracle's BTC address to get rid of my hard earned BTC.