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My question: how do you feel about "real" inter-PC conflict (ie: conflict that actually harms another PC)? Should a player pursue it? Should a GM permit it?
This really depends. inter-PC conflict can be brought on by a lot of things (disregarding OOC, player problems).
Playing the "off alignment" (the evil characer in a good pary, or vice versa) can generate some interesting character conflicts that I have seen in the past.
Had a player WANT to play a CN Rogue in what was a party of mostly good players. and (against my better judgement) I allowed it. Things went ok for the first few levels of play, then (in "true" CN fashion <note the scarsastic quotes>) the rogue starting going 'sidesways' on the party. At first doing little things in character to piss off other charcters (stealing items from one and planting them on an other). and the players kinda put up with it.... until time came to devide up a valuable loot pile and one item was worth A LOT.... in the end the Barbarian/FB character bought out the item. The rogue pissed that she didn't get it, backstabbed the Barb/FB..... after the dust settled, they were scrapping little rogue bits off walls and clothing of their place for days. the Rogue player was seven different ways of put out that she was 'PK' by a party member.
The Barbarian's player's response was. "You have spent weeks cheating the party, stealing fromt he party and disrupting the party. Adn now YOU attacked a party member. I just put an end to your actions."
Rogue Player "I was playing IN CHARACTER, I'm CN I do random stuff"
Barb/FB player: "CN is not Chaotic-pain-in the-ass/stupid. And I played in Character, I took damage, I frenzied, I wiped the floor with the attacker."
CG fighter: "never get between a frenzy berzerker and his prey... or a leg of pig."
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Playing a "difficult" character can also lead to character on character problems. Group harmony can only be achieved when all players make 'supportive' characters (no, I don't mean they go about sharing feelings and giving pep talks and pats on the butt). start throwing in Vendictive, or Prejudice, or other anti-social flaws and you can get a reciepe for some character on character hate right quick.
'Special Snowflake' characters can also be a big issue (depending) as this can lead to character to character violence through animosity and jealousy by the players, that in turn look for the smallest excuse to inflict harm on the "offending character"
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Sometimes however, Character on Character violence comes about from a problem between actual players. And this is a whole different animal. When it seems that two characters are coming to a head over a Player VS player dispute, it's time as either the GM and the players, or the whole table to sit down and voice their differences and see if they can work something out. Sometimes they can... sometimes it's time for one of the players to leave the gaming group.
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when it comes to this type of behavour, there is only 2 thigns that you can do... Allow it, or disallow it.
If you Allow it, expect there to be hurt feelings and bitterness and all the that unpleasent type stuff. And yes it could tack on through many a game.... after all, cause John killed Bob's last character, Bob 'has' to kill John's next one 'to even the score'... and so on and so on... Hopefully you are dealing with a group of MATURE individuals, and this won't happen... but you never know.
If you disallow it, then you need some sort of mechanicism to remove characters that ARE being disruptive (sorry Tim, you've been voted off SR island, plaese pick up your runner-up complemarty blender and at the door!) and ruining the game for others. Also you have to come to some sort of understanding at character creation that avoids issues ("No, you can't have prejudice: Elves, there are 2 elves in the party! How about prejudice: trolls?? no one is playing a troll" otherwise you are just leaving the door open for character on character Agro, that could lead to the "no PKing" rule to get bent, if not broken.
P.S:
Kat 9, Bring back your cat Gif! I loved that Cat's look and it matched your sig file perfectly!