Illeol's page

CR is notoriously arbitrary.
My best advice is to find something with similar stats and extrapolate from there. I'm honestly unfamiliar with the creature (template??), but if they gave stats and no CR, look for an errata. If its just a description in the "ecology of lizardmen" or something, it's up to you to fill in the blanks.
Play testing goes a long way (post your results).

Thanks for the input guys. This was a surprisingly easy answer to my question.

The 3.0 Guide to Pathfinder Organized Play says its legal, but how do I track this equipment??
Do I need to have a GM sign off??

Prerequisite: Halfling.
Benefit: Once per day, when confronted with a
situation that calls for a particular mundane item of
equipment, you may make a Sleight of Hand check with
a DC of 10 plus the item’s cost in gold pieces to “happen”
to have such an item on your person. For example, having
a crowbar would be DC 12, whereas a flask of acid would
be DC 20. The item must be something you can easily
carry—if you are on foot and have only a backpack, for
example, you could not have a large iron cauldron. You
cannot have magical items using this feat, nor can you
have specific items, such as the key to a particular door.
If you are stripped of your equipment or possessions,
you lose the benefits of this feat until you have at least a
day to resupply and “acquire” new items. You must pay
of these items normally.
Special: At the GM’s option, a character can substitute
the Survival skill for Sleight of Hand with this feat. Such
a choice is permanent.

Mirror Image only creates images in your square.
Do you think cleave, whirlwind, etc. works on opponents occupying the same square?

Mirror Image only works vs. Attacks, or spells that require attacks. Magic Missile ignores Mirror Image. It was once different.

Wish I could be there guys.

What should have happened here, in retrospect, is the instant your character began watching this battle, the DM should have told you to roll initiative. This way, if you wanted to do option #1 you could - right as soon as your turn in the initiative order came up. Or, on your turn, you could do what you actually did, use a Delay action to go later. In fact, you "Delayed" for multiple rounds.

So if I'm at the arena watching two gladiators fight, then all 10,000 spectators are in on initiative as well???

No surprise for me when I attempt to assassinate someone in the crowd, because there is a fight already happening?

My contention is I shouldn't be on the imitative board until an enemy is aware of me.

Regardless thanks everyone for your input, and letting me muse a bit.

Someone else also told me that new combatants come in at the top of the initiative order, but wasn't able to site a reference. Anyone else know anything about this?

In this particular case I was the only PC actually playing, I was just witnessing a large battle that had turn by turn consequences for which the GM had elected to give initiatives to the various factions. I was well hidden and had every advantage. When I chose to enter combat, all factions were unaware of me.
So I guess my question is, can the GM call for initiative even though no enemy's are aware of me?
In my opinion this can be an easy way for a GM to nerf surprise actions.

If I join a combat late (One for which an initiative has been rolled.), but am hidden and thus the only one aware, do I get a surprise action?
For example I'm hidden in a tree for multiple rounds watching a battle, but not participating. No one is aware of me, should I even be on the initiative board?