Dwarves vs Elves - Custom Faydwer PvP

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I would suggest that #6 is already like an instanced duel. You haven't really described what would happen if the player that has to scale down gets attacked by others. While you might consider if that falls in with your faction play (or get to it while it's in construction), I assume that the parent scaler would be the lowest level person that got attacked. It would be a shame if the attacker was the parent during an encounter with whichever NPC the defender was attacking at the time.