A lot of people say this when they are challenging someone else:

I'll verse you.

I thought this sentence was grammatically correct. However one day my computer teacher got into an arguement with us about it. He whipped out a dictionary and began searching the word "verse" and told us the definition and said that saying "verse" as in challenging is wrong. It should be used as like: Home verses Guest. Is that right? and if it is, why does major population say it like it is?