Death is pretty much something that happens to careless/unlucky players.
After a players dies his/her soul will leave the body to stand before death himself. A players physical body will be left lying on the ground in the room where he/she died with all their possessions where they might be retrieved later.
When a player dies he/she will loose a certain amount of experience and 1 in each attribute such as str, dex, int, con. (Exceptions to this are areas that inherit a self defined death structure, as for instance Reikland, Amril or Empire, where the death toll doesn't involve the losing of stats.)
To recover from the immaterial state of death, one can pray to Odin for redemption and perhaps a second life.