UVa 489 - Hangman Judge

#include<stdio.h>
#include<string.h>

int main()
{
int T, hangman=7, n, m, i, j, error, flag, right;
char s1[1000], s2[1000];
while(scanf("%d%*c", &T)==1 && T!=-1)
{
gets(s1);
gets(s2);
n=strlen(s1);
m=strlen(s2);
error=0;
right=0;
printf("Round %d\n", T);
for (i=0; i<m; i++)
{
flag=0;
for (j=0; j<n; j++)
{
if (s1[j] == s2[i])
{
s1[j]='\0';
flag=1;
right++;
}
}
if (!flag)
{
error++;
}
if (error >= hangman)
{
printf("You lose.\n");
break;
}
if (right==n)
{
printf("You win.\n");
break;
}
}
if (right<n && i==m)
{
printf("You chickened out.\n");
continue;
}
}
return 0;
}