I don\'t think their should be town wars. Like I said in last weeks War thread, Guild\'s are not nations or towns, they are what the name implies: Guilds. Cities are big, and usually host a large diversity of people and creatures, AND beliefs. One city shouldn\'t be the \"Lawful Good City for Humans\" like in EQ. Cities should have multiple guilds that compete for territory and have secret bases hidden in large buildings. Like in BG2, the thieves war was a perfect example of what a guild war should be like. A paladin/cleric guild would fight the UD/thieves guild etc.
I think there should be national warfare as well, but totally un-related to a guild wars. If a person got some power, he could gather his NATION (Not guild) and attack a neighboring nation. Everyone who went would get emblems (sp?), loyalty points to that nation (for cheaper goods or something) and maybe some food or something. Then everyone would gather to march to their enemy where they are on the march toward you.
Note: The latter should be very rare and perhaps GM run, or at least GM motivated. Maybe it could be religous or God run, where Laanx declares war on Talad or something. Maybe tensions between 2 races grow high and they beging attacking eachother.
Anyway, GUILDS ARE NOT NATIONS! Please don\'t make them so they control entire cities, small towns at most; maybe only outposts.