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A new store in my area has just started carrying Warhammer 40k. I would like to help them build the community. I plan on doing a few assembly and painting classes. Then after a month or two, run a 40k tournament using the Heralds of Ruin kill team rule set. With top prizes set for painting and sportsmanship. Hopefully discouraging aggressive players, and encouraging new and friendly players.

Has any one had experience with low points tournaments? Any ideas or constructive criticism?

Well if you are going tournament style with Kill Team at least you are using HoR rules. If it's an elimination tournament and there's enough players to get 4 pairings for the first round then I suggest using Campaign rules so at least two stages will begin showing veterans (and casualties). If there was enough terrain for multiple games to keep going I might suggest best 2/3 for each round but there is potential for two finalists being out of balance depending how and how many battles went for each finalist leading up to that point. Worth a test.