Thinking about playing...

I've been trying to gather up information on this also, this is what I have so far. It may not be 100% accurate, but I am sure I will be corrected if it is not.

Villain Points
If you kill someone 3 levels or more below you, indicated by their name being green when you select them, you get villain points. Villain points lead to rogue levels.

Rogue Levels
Rogue level 1 = 40 villain points: Guards will attack you and you can not party.
Rogue level 2 = 60 villain points: Can not trade with merchants or blacksmiths. Penalties from level 1 apply also.
Rogue level 3 = 100 villain points: Death penalty increases to 10% XP loss (instead of the typical 3%). You can not be first attacker. -50% XP gain. Penalties from level 1 and 2 apply also.

Letters of Pardon
Letters of pardon reduce your villain points. Letters of pardon are dropped by MOBs once you have villain points. You loose 10 villain points for every 50 letters of pardon.

First Attacker
You gain first attacker status by being the person to initiate a PK/PvP. You are tagged with a skull letting everyone know that you can be attacked by anyone over level 20. Players attacking someone marked with a skull will not get first attacker and they will not get villain points. First attacker disappears after 20 minutes. There is no other way of removing this.

Bounties
You can place a bounty, with your own money, on a PKer. The money comes out of your pocket and is a minimum of 100k. If the player with a bounty is killed, the killer will get the bounty and the PKer will get a death penalty as usual.

Safe Zones
Towns are safe zones.

Drops
You do not drop anything when you die in PvP.

Skulls
Purple = first attacker
I'm not sure on the next three...
White = rogue level 1
Yellow = rogue level 2
Red = rogue level 3

Battlesquare
There is no penalty for PvP in the Battlesquare. You get to the Battlesquare by going through the Battlegate in a town.

Skull Drops
There is a 1 in 25 chance that when you kill someone in PvP you will get a skull, but only if you are in the Battlesquare. These are drops, not to be confused with the colored indicator that goes by your name. These skulls are collected to get a Guild Mark.

thanks. So its more or less an open pvp system?

Yes, open PvP system. There doesn't seem to be a lot of senseless ganking going on in the game though, I would guess because of the pretty steep penalties and the fact that you leave yourself open to attack without penalty for 20 minutes.

Hey wolfdude someone said to me in the game that you will have to be lvl 15 to player kill.

That's possible, I haven't tried to PK at all. The only place I PvP is in the Battlesquare, which you get access to at level 15. I have been ganked pre level 15, not much of a challenge for someone, but they had to grind out some letters for a pardon after that if they were level 15 or above. In any case, I'm pretty new to the game myself and just passing along what I have dug up.