The weight gain you are experiencing is likely water and some lean mass. I have tried supplementing with KreAlkalyn (which is a Ph balanced creatine supplement) and Nytric. Even though the claim is that Ph balanced creatine is supposed to eliminate water weight gain, I'm sure I gained a couple of pounds while taking it. So to answer your question, I have experienced something similar. As soon as I stopped taking it though, the 2-3 pounds came off quickly. The strength gains I found were minimal - I just love training hard, so it's hard to say for sure whether it was the Nytric or the KreAlkalyn... How much creatine are you taking?
As far as BF levels, I like to stay within about 5-10lbs off my contest weight -I feel much healthier that way. Not certain what exact BF would be...I generally judge it by how I feel and my overall look.
Hope this answers your questions...
All the best with competing next year!!!