During a recent game I almost got in a repeated position FP vs FP with my opponent, with a resulting Paralysis+Protection situation on both sides, but one of us broke away from that position just a turn before it became fully settled. Can the game get stalled in that position (or in another position)? what happens then? is it a draw or a potentially neverending match?
A never-ending double paralyze can lead to a deadlock situation. Especially if the is an Elemental that both mages have to be protected from. So, Yes, it can turn into this :
for both mages.
Hopefully, 2 paralyze spells cast on the same target cancel each other, so by casting your own paralyze spell on yourself, you will cancel the other one.
And moreover (and this has been a rule modification to put less power into paralyze spell), there is the fact that : if another enchantment spell (i.e. Amnesia, Confusion, Charm Person, Charm Monster or Fear) is cast on the same person as a paralyze spell, the other spell is "stronger" in the sense that the paralyze spell is cancelled on that turn. This could be used to break the FFF. (Amnesia is not a good choice ;-)