Mmm, I actually really liked the arrangement, as far as what it is. I think when people listen to a Mario remix they want to still have 'Mario' in there. I don't think the judges will nail you on the arrangement, objectively speaking.
I'm going to agree with the drums on this one - they are extremely boring. They need to have a lot of variety and spice, especially on a track like this that's supposed to have a lot of zest and spunk. The bit at 2:19 is a step in the right direction, but there needs to be more excitement in the set as a whole overall. This is absolutely critical in a song like this.
The brass works in a 'I'm cheesy on purpose' sort of way, but some of the other samples are really quite grating. The piano sample in particular is really bland and unrealistic. Give it some volume, give it some humanity, don't play every chord at the same volume, add a little pedal to it... There's a lot of work on the piano before I can really accept it's presence on here.
The production needs some more spread. Use a little panning in this to use the space better. Everything just crowds in the middle, as it stands, so don't be afraid to pan some instruments and drum set pieces to the left & right, even just a little bit. It'll help open up the track.
The bass is pretty light, in here. Throughout the main sections it works, but there are some areas (like 1:14) where you have some intricate bass going down that no one can hear. You need to give the bass more strength in sections like this.
Aside from what I've said, Flexstyle has a good review of what's going on - the intro, the drumstyle, the samples and such are all spot on, as well. Also, as he said, it's still a pretty fun piece - it just needs some more work before it'll have a chance in the panel. Good luck on it.