Rick Jones wrote up some rules for Wushu Falkenstein over on RPGnet, which should interest at least a few of my readers. His magic rules are excellent. Also on the topic of Wushu, the author turns out to be a regular poster on RPGnet. And here’s a post on running Exalted with Wushu rules.
I’m still trying to figure out the over the top problem. Here’s another take on it: Embellishments don’t have to be flashy. “I slip through the night, varying the rhythm of my footsteps irregularly, my black suit blending with the shadows, avoiding leaves and other noisy footing.” As a GM, nothing is forcing me to present the players with obstacles which invite flashy solutions — what if the fight takes place next to a sleeping giant?