Sorry it has taken me so long to reply, I have been doing alot of thinking.  This is what my camp has come up with:

Guild XP:  1 point for every 5 normal XP points.  WHat you can do with with your guild XP is raise your reputation in the guild,  raise your guild reputation, use it to gain new members, ECT.  The way you do this is one of two ways.  The first is you pay the cost of doing so.  Depending on what the rep is what the price would be.  It will range from 1 to 10 points per point.  For example if you have a rep of 80 and wanted to raise it a few points it would be 8 points per level, 9 points for 90-99, ECT.  The other way is put some points into the Guild pool and when the Guild pool has enough it can spend points for stuff like guild rep, more members, and so on.  The is also going to be a money value for each thing so if you had enough money you could buy rank or members, but this will be much harder to do.

Creating a Guild: There is going to be 45 points to spend on creating a guild.  You spend the points is Guild rep, How many memebers, Your status in the guild so you do not have to be the owner.  You could just be a member, and how many cities your guild is in.  The rank will go from good to normal to bad.  The good costs more and the the bad will give you more points.

Ruling a city:  Every guild that has a rep of 80 or higher may ask to be on the council.  The council is made up of guild representatives from guilds with a rep of 80 or higher.  If a guild gets a rep of 80 or lower they are removed from the council.  The council sets the rules and ther guilds have to follow them.  The basic rules are:

No open warfare in the city sreets
Each guild has to pay a tax every month to the city
No council member may take bribes
All guilds must obey council Decisions
All guilds that want to work in the city must get approval from the city
The newest rule is that no person may use an non-approved guild (Will talk about this in a bit)

Punishment: When laws are broken how are they enforced?  Punishment can range from fines to death of you or your guild.  Once a person or a guild is found guilty of a crime the punishment is carried out as soon as possibale.  There are courts for this kind of thing, but most of the time something seems to happen to those in question.   On every case a guild is in question and found guilty rank is always lost.  If you lose enough rank (0-100) and go to 20 or below then your guild is no longer thought of as a guild and the normal rules do not apply.  for guilds with higher rank it is much harder to lower there rank because of how they are thought of among thier peers.

Story conecpt:  Guilds have been around for thousands of years.  And for a long time now simi peace has been around for the guilds.  Now there is still peace but there is a uneasy air around council bluffs (the biggest human city and the starting point for the game) because for the last few years new guilds are being formed with out the approvel of the council.  They do not want open war because they would lose,  but these new guilds want things run differently and there rep is growing as being able to get things done.  As the years move on the council loses more and more control over the guilds and are trying to keep there hold on the power.  The newest thing was enacting a law that makes it illegal to take jobs to any guild not approved by the city.  The pepople are not listing and going anyways.  The human cities are in stuggle to hold on to the old ways while new people and guilds are tired weith the old ways and want hings to change.  More and more guilds are being attacked without getting caught and the people with power are trying to keep the power without the blood of the guilds spilling into everyday life and giving the greatest city the humans have ever known the threat of being destroyed one guild at a time. 

Now one of my troop will also be posting so it might get a little confusing, but he can do a better job of explaining things.

Here is the link to the other posts.

A update to the game formally called GUILDS
GUILDS new game ( very long)

My thoughts seem to be very scrambled and do not make very much sense.  I will pull all of my thoughts together and create a new post later.

Looking forward to it, John.

Regarding Guild XP, I don't understand why you need two XP systems.  What can Guilds do with XP anyway?  Why not just make the player choose to either spend their XP to improve their Guild or spend their XP to improve their character. Then work on making that a tough choice. =)

I like that thought.  Thanks for the imput.