The tournament drew a record 29 entrants this year, largely because of the flexible scheduling format instituted by GM Jonathan Lockwood. In another change, bidding for supplies became mandatory if players wanted the same side, while the controversial "reroll rule" was made optional this year, and will not be included next year. Surprisingly enough, overall play balance continued to tilt in favor of the British, with the British winning 15 matches to the Axis 9! Five of the nine Axis victories would be won by eventual finalists Jonathan Lockwood (3) and Lane Newbury (2), a veteran player from the 1970s who returned to the WBC 2001 for his first tournament in nearly two decades.

Round One saw several upsets, among them former two-time champion Gregory Smith falling to newcomer Michael Day's Axis forces, and Steve Packwood coming up short against Michael Mitchell's British defense. GM Lockwood's match against Ken Whitesell saw Whitesell giving Lockwood two German supplies to keep him from employing his Paleveda Gambit as the British. This proved fatal, as the Axis stormed to victory by August 1941. Other Round One survivors included Lane Newbury (Axis), Phil Evans (British), Ed Menzel (British), Steve Likevich (British), Bruno Sinigaglio (British), James Pyle (Germans), Tim Miller (British), John Clarke (British), Johnny Hasay (British), and Victor F Hogen (British). Bill Scott advanced on a bye.

Round Two saw GM Lockwood employing the Paleveda Gambit to deadly effect against Hasay's Axis, defeating him in July 1941 with an encirclement around Tobruch aided by the Gambit forces in Cyrenaica. In other matches, Evans (British) defeated Pyle (Axis), Menzel (British) defeated Clarke (Axis), Likevich (Axis) defeated Hogen (British), Sinigaglio (Axis) defeated Miller (British), and Bill Scott (British) defeated Michael Day (Axis).

Round Three once again had Steve Likevich giving GM Lockwood two German supplies to keep him from using the Paleveda Gambit as the British. And again Lockwood used the supply advantage to decisive effect, compelling Likevich to concede in June 1941 as the Axis forces stormed virtually unimpeded toward Alexandria after sealing off Tobruch. Meanwhile, Lane Newbury scored the upset of the tournament, stunning top-ranked Bruno Sinigaglio with a tenacious British defense. Phil Evans advanced to the semifinals on a forfeit, with Ed Menzel advancing in the other bracket on a bye.

Round Four had only one match, as Lane Newbury advanced by forfeit over Ed Menzel, who had to choose between continuing in VIP or AFK. It would prove to be a wise choice. Lockwood faced off against Phil Evans, who again bid to give the Germans a two supply advantage to deny Lockwood the use of the Paleveda Gambit. Lockwood scored a decisive victory in June 1941 by taking Alexandria, forcing Evans to concede once the siege of Tobruch became inevitable.

The final was another classic, with Lockwood bidding one German supply to take the British. Newbury accepted, and employed an extreme southern opening with the 21st Panzer. Lockwood stymied this with the Paleveda Gambit, and prevented the Axis from advancing to the Tobruch perimeter until June II 1941. Newbury, however, had perfect supplies to this point, and was in excellent position. Looking for a knockout blow, Lockwood overran the 21/3 near Knightsbridge, encircling most of the Afrika Korps and destroying two supplies. Newbury found a counterattack combination that enabled him to break the encirclement. Lockwood responded with a 2-1 surrounded counterattack that destroyed Ariete, but with substantial British casualties. After another two turns of furious attack and counterattack, Lockwood conceded in July II 1941, giving Lane Newbury his first (and well earned) WBC wood!