That sounds similar (though not identical) to Caps. I still haven't gotten around to writing up an English-language page for the Caps rules, but i guess I should.
Remarkably complex, the sign of any really good drinking game. :)
Oh! Rats! I forgot to add in the rules for determining the end of the game (all but one player leaves teh circle IOR there is no more $beverage)!
Swedish university student drinking game. Brilliant, in the right circumstances, can be paced to slow or high speed (mainly by adjusting the timing before starting count-downs). Should we arrange for some bottles of beer and some plastic glasses from a handy water-cooler, at some point? If we can make it for next weekend, I might even entice two more players from Sweden. Alternatively, Caps-in-the-park towards summer?