Well, i currently play an other MMOPRG that has free accounts, and both PvP and non-PvP servers.
On PvP-Servers you can be killed everywhere but in certain areas like temples, and in the intro-tutorial.
Basic problem: any MMORPG, and especially a free MMORPG, will attract people (usually young people) who only find fun in the game if they can ruin someone elses day, or think the game is just quake with more items.
On PvP servers, these guys will happily kill you for any reason including \"beeing there\". If they are finally too wellknown or get banned, they just start another free account, power-level for one or two days, and continue.
On Non-PVP servers, these guys will annoy players. Block ways, block respawns, camping, luring monsters, steal, insult, etc. Unfortunately, in my other MMORPG the only way to handle such things is PvP.
So, you basically have the choice between a world of psychopatical mass-murderers and a world of idiots and thieves.
I wish you much luck in finding a good solution for this dilemma