This is the tourney in question:

http://WarLight.net/MultiPlayer.aspx?TournamentID=1890

And here's my question:
Faith, HHH, and I all have 7 losses/12 wins. I beat HHH, HHH beat Faith, and Faith beat me. Who will be ranked higher? You can also factor in Lollipop, who also has 12:7 and beat me and HHH ,but lost to Faith. and you know what, just for fun, let's assume teddy loses to unkownsoldier, which would also put him at 12:7. Teddy lost to Lollipop, but beat me, faith, and HHH.

i haven't the slightest clue how to begin ranking the 5 of us, so if anyone knows, please enlighten me

Look at places 3-6 here:
http://WarLight.net/MultiPlayer.aspx?TournamentID=1680
It seems to me it was done randomly (if win/loss ratio with the people from the same tier would matter, 3-4 and 5-6 would be reversed).

there is only one tie-breaker i've been able to make sense of: if 2 people are tied, the winner in their game is ranked ahead of the loser. when there are 3+ players tied, it seems to be random...

Technically it's random. Period.

Though you can build up several criteria by yourself, like extracting the pool of games between all the tied for first, and check if there are unbalanced results in there. Just an idea.

Alright, I was talking more about what would be seen at the end of the tounrey, as opposed to my personal view on the rankings, but that's an interesting idea Mian. Random seems to be the unanimous answer, thanks :)