[Satrek2000]

Doesn't sound too bad - but there should be a way to get rid of the blood-flag without losing anything, not even a few minutes - as in your example, your magic bullet would be flagged even without you intending to attack a player, and also people could run into your spells to get you blooded. How about this, if you hit a player you get a value 'blood' of 2^(hits). So the first hit gives blood 2, the 10th blood 1024. Killing a player adds some thousands. Till, say, 500, nothing happens. Above that value, said guards will warn you, then disable the apropriate spell for a while, and eventually jail you - killing 2 people will get you a candidate for jail automatically. Running adds points, like teo for every second that passes after you saw a guard trying to get you. The points would either cease over time, one for each second, or you could go to jail and pay them off. Another way might be praying and being blessed or something.

Edit: maybe improved weapons should give more points than normal weapons...