Steriotypical RPG has a conflict system

I stumbelled upon this concept while trying to teach my 7-year old sister to play Star Wars D6. It just flashed in my head and I spent the next week trying to get it to work. My friends love it and I've tryied it temporary substituting freeform mechanics from thoes in my game. I've only used it for combat but it's easily adaptable. Here are the main points.

Initiative-This is used when both poeple are in eaquil positions, where both are making actions that are comperable in speed.

Speed- Is determined by a simple chart on your character sheet, that uses actual seconds, movement rates, acceleration and other things.

Time- Relative (my greatest joy)

Scenerio:

Player: My bounty hunter looks off into the distance.
GM: You see a tall, slim figure in a black gown sitting on a picnic cloth. He seems to be next to a basket eating. You notice that, next to him, lies a long pole; possibly a quarter staff.

Player: I approach him.

GM: He turns and calls out, " Why hello sir. Care for some jam on bread?"
This supprises you. According to his bounty, he had a relentlessly vile manner. But now that you're close to him you see that he matches the poster's description completelley.

Player: I slowly approach and eat the bread. "Why thank you."

GM: He responds, "It's nice to see that a good bounty hunter knows good ettiquate, even in these days."

Player: I thank you again, but there is no word "alive" in your bounty.

GM: "I quite understand. Draw your swords, fair soldiur."

{Finally comes the combat. They roll initiative, and the staff guy wins. However, he chooses to pass. You will see why.}

Player: I hold my left sword parrellel to my waist. With my other one, I make a verticle slash at the quarterstaff guy.

{Every action that effects you in combat allows you a single response. That may be to dodge, parry, block, move away, or use a special ability or whatever. After an action is done, you find who has priority. Initially whoever has initiative has priority. After that, it's determined by the GM. In most cases defending gives you priority.}

GM: He responds by blocking with the middle of his weapon. He now has proirity. He now swings at you with the left side of his staff.

Player: I block with my left blade.

GM: Let's see... You had it defensive originally, so you get a bonus. You easily block the light blow.

Player: I assume that I have priority.

[GM nodds.]

Player: Well... Quarterstaves can't block thrusting weapons, so I'll thrust with my right, block with my left.

GM: He parry's it, get's priority, and attacks with two blows.

Player: I'll block with both swords.

GM: One get's through. And you have priority.

Player: That's it! I charge at him, thrusting both swords ahead at me at maximum length!

[GM moves his eyes from the sheet to the player.]

GM: Are you shure?

Player: Damned right!

GM: Unfortinitelley he responds with an advanced maneuver. He extends his pole to maximum length while you're running, picks you up and tosses you over him. As you lay on your stomach, he walks over, takes your gold and says: " As you see, there are advantiges to posting your own bounty."

I'd like some feedback. Personally this is the ideal conflict resolution system that I've been trying to create for years. I find no obvious problems and only have to clarrify what you can do while you have priority and what you can respond with.