The text in parens in my previous post ("banished to another realm" for example) is what the system says publicly in a system message (shout range) when it happens. The thought behind this was that "struck down" implied death, and "banished" implied a kick from the server. (as well as a death; you login to the DR) I just didn't want it to shout "kicked from the server", as it's quite OOC.
The third level gives a 10 AP hit, plus 10 DP if it was duel spam. The fourth does 30.
For expirations: You expire all but one spamPoint on logout. You can exipre when inviting after not inviting at all (duel, group, guild, trade, etc) within enough time. (specifically, the time the next rank up has set for its lockout)
Ex: Get #1. Play for 5 minutes, invite, back to 0. If it's a deny, it goes back up to #1 again.
I also threw in some voodoo where you could expire more on an accept from someone with noticably more AP then you and no SP. The code is all in src/server/invitemanager.cpp and h, if you wish to look at it. Use the link in my sig.
There's a bunch of other threads with more detailed (and less useful) info out there if you'd like to search. Most are just spammers complaining, though.