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(1) What is the penalty for death in EQ2?
Almost non-existant! There is a small hit to your XP which is then repaid while you continue to kill mobs. After death you have the option to revive in a safe location -or- be rezzed by a group member.
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(2) Are there opportunities for PvP if you play on a non-PvP server? I always played on PvP servers in WoW and that's something I want to get away from - but I still like to have the option to PvP when and if I please.
You can duel with another player if you are not on a PvP server. There are also instanced locations called "Arena"s where you can indulge in solo or group PvP within the framework of a game within the game (capture the flag, king of the mountain, etc.)
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(3) Is there an auction house? I had read that early on in EQ2 there was no AH and people were complaining that you had to spend a lot of time in your house in order to trade with other players.
There is a broker system and no, you no longer have to remain inside your hoime in order for your things to be available for purchase.
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(4) Is there in fact a good compromise between solo and grouping?
Excellent! I solo when I want, group when I choose and raid when I wish! All three provide opportunity for good XP, good loot and great fun!
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(5) Please describe the typical exp party - do you go out and crawl into dungeons, instanced or not, to complete quests? or do you stand in one place grinding identical mobs like in FFXI?
All of the above! There are numerous instances wherte you can work your way through a dungeon in pursuit of fame and fortune OR you can pick a spot and pull mobs to you all night! Whatever floats your boat, the choice is yours.
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(6) Is this game accessible to me as a semi-casual player? I used to be hardcore about FFXI and then WoW but I stopped playing 40+ hours a week a long time ago and I never want to go back to that.
I average 2 or 3 hours a night. Some days I don't log in at all... and I manage to get plenty done!
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(7) I know that class choice and race choice are a matter of preference - but are there any things I should know about races? And is there anything I should know about classes when it comes to soloability?
Some classes solo better (faster or more efficiently) than others, but all classes can solo... it all comes down to your own personal preference and style. Race has no real effect on abilities.