Few things are certain in life. Yet one thing that is certain is that game devs often have very different ideas on handling death in an ORPG environment. After considering it carefully, here is my plan for Myth.
When a character dies, the spirit leaves the lifeless body. All items remain in or around the corpse. Players in the same group may freely take them (as they must be voluntarily added to your party- just because someone groups you doesn't mean you have to group them ;-)) to help recover possessions and the body. Scavengers may also loot the remains at a loss of reputation. The slayer (if any) may claim objects without such loss.
The now disembodied spirit can still look and move around, and even manifest to communicate (though spirits are normally invisible, so it may be tough to identify the ghostly voice). However, this drains energy, which replenishes slowly. OTOH, spirits can avoid most doors and obstacles and are pretty much invulnerable. However, the spirit can be driven away by various means and methods exist to seal areas against spiritual entities.
If exorcised, or the spirit just decides to move on, the spirit will enter the lands of the dead. Here, it will remain until one of several things happen. It may be summoned back to the material world as a spirit. This is useful because certain rare magics exist that can rejoin a spirit with it's body or even possess a new one! Second, it may seek release from the dread lady Hel, keeper of the Dead. Of course, it should probably figure out a way to get a body, or they may be returning shortly. It may seek rebirth by drinking from the river Oblivion. This is dangerous as it involves a test of karma and risks eternal destruction. Of course, the deceased could just resign itself to its fate and hang around Hel's abode. Sometimes, greater powers intervene. If, for example, a character was an accomplished agent of Chaos, it is quite possible that the Lords of Entropy aren't going to let something as minor as death release their servant- no matter how much the agent may wish it!
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