I loved the idea. You need to expand the game into something more serious though. You could actually incorporate many types of mini games into this, puzzle and arcade.
It's fun but not worth doing the whole thing again every time you lose 3 lives. Make some check-points after some levels are reached. A small story line wouldn't hurt either.
Excellent game like the first. One huge suggestion: Make the frag bullets a different color from normal ones. I keep avoiding all kind of bullets unnecessarily.
Excellent idea but you should bring the "useless" stuff back to the game: castling, en passant, pawn promotion etc…There's no sense in respecting the piece's normal moves and simply discarding other traditional chess rules because people who play this game knows chess. And the ultimate goal should still be to kill the king. Since it's multiplayer, create a ranking system so people can come back to raise their stats. I could even tolerate some non-chess power-ups like bombs, extra kings or traps you gain after some killings.