Is it possible for me to make a room in Toribash that allows 2 players to keep playing. While automatically placing random room joiners in spectator mode?

Yes, but setting a password for the server.

Command to set the password: /passwd passwordhere

To enter the server, type /pass passwordhere

The bold part is just an example of what you can put

A private room? For you and a friend? This can be arranged.

If you are the maker of the room this can be done.
Type in the command /passwd [passhere]

Put the password anything you'd like, just remember to tell your friend.
And tell him to put in /pass [passhere]


EDIT: dat ninja