Now, of fame and glory.
When you'll complete a quest, you'll get a bit more famous, and get a bit of reputation, eventially gaining enough fame to be recognized automatically.
Simply killing stuff left and right will do the trick too... that you'll be recognized as a killer. Live will be rather... difficult after that.
Btw, the NPC reaction (I've mentioned good AI already, right?) should be, in case you are excessively evil or good, rather pronounced - like respectful murmur, people giving way in respect , cheering on occasion, and perhaps asking for an autograph
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if you are good.
If bad, you'll be looked askance, cursed, people part around you (but in fear this time), guards will start to hunt you down, etc.
Also, this system should be based on city->country/nation->continent scale. Yea, like in Fallout. You can be hero of one city, but in other you'll be only heard about, at best, and completely unknown in other country/nation.
This way, gaining good reputation (or bad one, but that'll be rather risky) will be very rewarding in terms of 'coolness', + discounts, + exclusive quests, etc.
And then, gaining reputation is much more varied then training skills. Btw, in some quests, you may not need to use your character skills at all (think puzzle ones). And inchar reputation (with NPCs bowing to you in respect, and newbies dropping jaw seeing that) is much more fun then just being known as a good PvPer OOC (and see below).
Each type of quest, no matter how often repeated, should NOT give same amount of reputation each time it is completed.
Simplified example:
You get a quest to kill a rat. You complete it, and gain a few reputation points (marking you as a person you can take on a rat). You complete it an other time - very insignificant addition to reputation/fame - like, people see that you really did kill it, not stumbled on a corpse by chance. And next kills do not add anything to reputation/fame - since you already known as 'scourge of rats'.
Same goes to killing wolves, trolls, dragons.
When you'll kill a dragon, you'll get quite famous... but after you'll kill 10 more you'll not get 10x times famous after you killed the first one - only a bit more.
Well, killing each dragon in vicinity of different towns may be smart, but again, there is a limit you can raise your reputation with repeating competition of a same quest.
Also, reputation should be connected with quest type (see my idea on quest types):
* If it was kill quests - you'll get marked as 'Slayer'.
* Protect quests - Protector.
* Cure quests - Healer (you if you think that no doctor ever became famous... remember Bible :D)
* Infiltrate quests - Legendary spy.
* And world-famous scientist go without questions - who don’t want to become as famous as Einstein?
(Btw, negative reputation should also be different, like killer, thief, spammer
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, etc).
So on. This will allow ‘pacifist’ type players to attain fame w/o running ‘Bring ten wolf tails’ quests.
Also, some people (depending on personal preferences - see, profession) may react differently toward famous people.
Like, Slayer will be more feared then respected, Spy may arouse disdain in warriors, Healer loved by pretty much everyone, etc.
This way, getting your reputation up (provided that there would be a LOT of quests of each type, and semi-randomized to boot):
A. Would take long enough (so, you can have a purpose in your life w/o resorting to simply maxing your skills/eq and PvP for a good time)
B. Be non-repeative (since completing identical quests a few tmes in a row, at least in one place, would be pretty much pointless anyway... except for reward, but wouldn't it be better to gain BOTH extra fame and reward?).
To sum it up:
Each your action (completed quests included) should be evaluated on it's worth in fame and reputation, and sphere it the reputation should be added (fighting, healing, spying, etc).
Instead of negative reputation, player should be allowed to build reputation of a thief or a killer.
If action's fame/reputation score is equal or below your current one, no gain in that field for you. Go for more difficult quests.
More difficult quests require you to have prerequisite fame/reputation, not skills. You may, after all, simply command a few hirelings to do this job - but since it's you who paying them, and you volunteered for the job, you get the glory. (But hirelings may refuse to work with someone of low fame, or particular reputation, no matter how much you’ll pay... well, unless you’ll pay a fortune, at least.)
Same is true in case of you joining the party of high-levels. It will be the leader who'll get the most glory. That's how it works in RL, and is good for balance reasons.
I’d say it is worth implementing.