The Pain and Panic Cup is the first tournament available in Olympus Coliseum. It becomes unlocked after clearing Disney Castle and the Timeless River episode. Fairly simple and straight forward battles with 9 rounds of heartless and a final battle against Leon and Yuffie. All enemies are capped at level 20 in this cup so as long as you're above that level you shouldn't have too much difficulty. Drive From are unavailable but Limits cost less to use so it is recommended to ensure you have at least 1 limit equipped in your party.
The final battle is not to difficult simply focus on one opponent before going onto the next i personally prefer Yuffie since her health is lower and she is easier to kill.