[haunter]

How about a bounty system instead? the more people you kill the more your bounty is, if someone kills you and you have a high bounty, they could go back to the "police station" and get a reward. Perhaps a list at the "Police station" showing who is "wanted". Hmm, and guards should attack/arrest anyone with a high bounty, and if you get put in jail, you skills decrese over time... I've been playing too much morrowind... Also, maybe fines could be implemented if you get arrested.