<blue}>...we've found that a check point system works really well. Throughout your adventures, and generally at the ends of each "floor" of a dungeon your character is saved to a checkpoint. When you die you're dropped back at the last checkpoint with a small amount of health, and the rest regenerates slowly. It's obviously a very forgiving system as it is. It's just too early to put a ton of thought in to what penalties there should be, if any, added on top of it.