We talked this over at the team and we think an available generator at character creation is the best option. Mainly because of last names being linked to clans and because we want people to be able to choose their names.

By this do you mean that we have to use the generator? I don't really care about last name, but I would like to be able to pick my first name.

Wars will probably be like any other MMO wars, they won't be official, you can call it whatever you like. But if it's an event, that might change. There might be scheduled wars/battles/fights/tournaments that are official. I think there will be a lot of fighting, as there are many people with different personalities and ideals that will clash.

Jutsu Name: Wind Rush
Jutsu Type: Ninjutsu/Taijutsu
Jutsu Description: Player turns into air and propels a set distance forward, or until you hit another player. If you hit another player, then you return to a physical form and perform a punch/kick/stab/slice/taijutsu move immediately.
Jutsu Level: Intermediate/Expert
Chakra Nature: Wind
Jutsu Range: Medium Range
Effects if hit: Damage to the hit player

This jutsu can be used as a dash and/or a damaging move. The taijutsu move would be very smooth, happening as (or very soon after) the player turns back into a human.

I was just wondering, since Kages will be players, what kind of NPCs will there be? Will quests revolve only around hunting/killing/helping NPCs, or will quests involve other players?

Problably Hidden Ocean for awhile, get mad skillz then ditch and become a Rogue Ninja.