When you first enter Valhalla, you are considered neutral. Your name appears above your head as blue. You may change your alignment to chaos and your name above your head will be red. Being a chaos player is only for roleplay purposes (you may not attack others; all PvP rules apply).
If you want to become chaotic, you must visit Uther [see Specialized NPCs]. He charges a small fortune to adjust your alignment. You may change back to neutral at any time for another small fortune.
Whether you are neutral or chaos, all guards will react to you. Guards in neutral towns will chase away those who are chaotic while guards in evil towns will chase away those who are neutral. Guards will not chase you away in your own aligned town unless you are criminal (gray).
Player guilds have 3 alignments: good, neutral and chaos. The name of your guild appears over your head and the color shows the type of guild alignment: green is good, blue is neutral and orange is chaos.