This game is now live...I'll post more detailed character creation guidelines tomorrow, but the short version is:
1) You will create your characters freeform. I will run the game using D&D 2.0 rules, loosely interpreted and kept out of sight.
2) Don't worry about whether your character is a classical "fighter," "cleric," "wizard," etc. You can be any of these things, or more than one, or none of them (i.e., a farmer's daughter and seamstress).
3) Characters can be good (human, usually) or evil (usually orc, gnoll, troll, etc.).
4) Depending on your background and my whim, your character will start out between first and third level, so no uber-powers. Characters should also be humanoid. Lycanthropes will be considered on a case-by-case basis.
5) I consider story to be more important than system. The only reason the system is even being used is to provide players who want a classic RPGing experience the chance to do things like levelling up, gaining magic weapons and spells, etc. If you just want to play a merchant's daughter who becomes an orc captain's concubine, the D&D character sheet I make for your character probably won't even be relevant to her experience in-game.