About the dragon thing, I talked to Miss K about it in PM's. I hope she doesn't kill me for posting what transpired but it answers your questions.
What I sent her:
"You do realise that by even mentioning the D word, you probably have opened it up to someone replying along the lines of, "OMG i saw a guild with the word dragon in it, how come they get to be a dragon guild and i can't have it in my name, this game suxxors, screw this i'm leaving!!!!11one2""
Her response:
"Not at all :}
A guild with the name "Dragon" in it will be asked for an explanation. In this case they have a rather interesting "myth" set up that is acceptable. A character with a first name that has "dragon" in it will be asked for a story as well - or in the case that the character isn't around but the name was reported or the character logged off before a /tell could be sent, the name will just be changed and discussions will follow after. Sometimes you can immediately tell who will have a story and who won't"
To the characters you play that word, dragon, doesn't even exist in mythical terms, unless you got a really good RP explanation behind it. As such, it is discouraged that it be used in side the game world.