yes, this is a member-on-member battle system. It will possibly evolve to a group-vs-group system, too (like a member can hire mercinaries or invite other members to help them) but this would be balanced (so no unfair play).
Sounds great. But why are all your links in yuor sig. broken? I, myself, can't program phpbb yet (I'm strarting to learn, a bit) but the roup thing sounds pretty good. Now I'm asing: Who IS working on a RPG system? I saw a few Threads with people working on it, but none sem to have links or such.