first, you can only PK lvl 6+ chars.
about the villiant points, i think it's 2 villian points if you PK a player who is 4 lvls below you.
the penalties are effective. atm i have to grind in places where other ppl are not visiting or i get instan…
yeah the panalties is nasty (also atm) imo. cant join/form group f.x and it's a pain if you want to power lvl fast(auto-loot group with group buff).
so i guess PK's gona do it the UO way in retail. i.e one red char when max lvl and one normal.