right now there is pvp within 5 levels of yours, although I have never had to pvp someone outside that five levels difference because most of the people in your zone where you are questing and farming are within 5.

As far as item loot, as of now, there is no item loot when you kill someone but within the next month or so there should be an item loot server, so when you do kill someone they drop all the stuff they were carrying. I will keep you posted as to when that server starts. And there will be no character transfer to the item loot server so we could all start to play then. @!!!