Well, this seems planned and thought out, but the main issue is exactly as Sammy said; it just seems too easy to run rampant and just be a massive jerk to everyone. The best piece of advice I could give for planning a campaign or writing a rule set is "Invite friends and expect assholes." In your example, why would Player 2 ever willingly accept the idea that he has taken damage and fallen from a great hight? He would just make something up, which would have retaliation, which would have retaliation in and of it's self in a never ending cycle.
Also, if I could be so inclined; why make this in the first place? Why not another already well established RPG system? Or were you trying to create something new in the first place, because I could understand that.
In addition to that, the team system seems a little wonky. The benefit to doing something by yourself is always getting to keep the spoils to yourself, but if everyone shares by doing it together, who gains by going it alone? Why would the teams be limited in a role playing sense?
For the character's statistics themselves, why did you pick those specific stats?
Why would a player want to avoid dying? What negative effect is incurred?
Why wouldn't everyone be in the same Group if they can't be in the same team? Why not send the whole group?
What is the overarching story? Just that there is monsters and you want to kill them for Levels?
I'm just asking questions at this point, and basically lining the left side of the screen with Ws, but you catch my drift. There are a ton of questions that need answers when you're making an RPG system or game, but I can see the skeleton you've laid out here. It just needs some time and some work before you can hit the nail on the head.
As a quick aside, I've never made an RPG system before, but writing a campaign normally takes me a month, as long as two, to give you a good time frame. But it could be played for far
longer than that, so it's a trade off. I'm sorry this is so serious, but you wanted my opinion, so... yea. I'm really sorry if it sounds mean.
The Narnia line made me chuckle a little.
This post has been edited by Gameking218: 20 January 2011 - 10:59 PM