It's very important to note that this is all currently in testing, and is not guaranteed to make it to live in its current form. With that in mind, we bring you details of the new PvP system after the cut, hot from the Testlive forums. It's not completely implemented yet, but does give an idea of where the AoC developers are going with this.
The notoriety system in brief: players apparently start out Innocent. If you attack an Innocent player, you are temporarily flagged as Criminal whether you kill him or not. (The Criminal flag vanishes after five minutes, so long as you don't do more naughty things.) If you kill an Innocent player, you gain Murder Points. If you kill a Criminal, you don't gain any Murder Points. Accumulating enough Murder Points makes you a murderer, which means guards will attack you on sight, you will be locked out of access to traders and vendors, and other players will get more rewards for killing you.