Index: D:/Source/trunk/L2_Gameserver/java/net/sf/l2j/gameserver/model/actor/pc/PcStat.java
===================================================================
--- D:/Source/trunk/L2_Gameserver/java/net/sf/l2j/gameserver/model/actor/pc/PcStat.java	(revision 2201)
+++ D:/Source/trunk/L2_Gameserver/java/net/sf/l2j/gameserver/model/actor/pc/PcStat.java	(working copy)
@@ -38,7 +38,8 @@
             int karmaRemove = value;
             karmaRemove /= Config.KARMA_XP_DIVIDER;
 
-            if (karmaRemove < 0) karmaRemove = 0;
+            // low level chars killing mobs with less XP than divider should still lose karma.
+            if (karmaRemove < 0) karmaRemove = 1;   
             if (karmaRemove > getActiveChar().getKarma()) karmaRemove = getActiveChar().getKarma();
             getActiveChar().setKarma(getActiveChar().getKarma() - karmaRemove);
         }
Index: D:/Source/trunk/L2_Gameserver/java/net/sf/l2j/gameserver/model/L2PcInstance.java
===================================================================
--- D:/Source/trunk/L2_Gameserver/java/net/sf/l2j/gameserver/model/L2PcInstance.java	(revision 2201)
+++ D:/Source/trunk/L2_Gameserver/java/net/sf/l2j/gameserver/model/L2PcInstance.java	(working copy)
@@ -2354,6 +2354,8 @@
 	 */
 	public void doDie(L2Character killer)
 	{
+		int lostXP=0;	//useful for new karma reduction...Team Olympus.
+		 
         // Kill the L2PcInstance
         super.doDie(killer);
 
@@ -2364,15 +2366,15 @@
             {
                 if (!ZoneManager.getInstance().checkIfInZonePvP(this) && (getSkillLevel(L2Skill.SKILL_LUCKY) < 0 || getStat().getLevel() > 4))
                     if(killer instanceof L2PcInstance && ((L2PcInstance)killer).getClan() != null && this.getClan() != null && this.getClan().isAtWarWith(((L2PcInstance)killer).getClanId()))
-                        deathPenalty(true);
+                    	lostXP=deathPenalty(true);
                     else
-                        deathPenalty(false);
+                    	lostXP=deathPenalty(false);
             }
 
             onDieDropItem(killer);  // Check if any item should be dropped
         }
 
-        onDieUpdateKarma();
+        onDieUpdateKarma(lostXP);
         setPvpFlag(0);              // Clear the pvp flag
 
         // Unsummon the Pet
@@ -2417,13 +2419,14 @@
         Random rand = new Random();
         boolean dropGM = Config.KARMA_DROP_GM; // do GMs drop gear or not? true = yes, false = no
         int dropPKLim = Config.KARMA_PK_LIMIT; // you do not drop items if you have less than dropPKLim PKs
+        int droptype = 0;	//initialize
 
         if ( thisKarma > 0 && !(this.getPkKills() < dropPKLim && killer instanceof L2NpcInstance) && !ZoneManager.getInstance().checkIfInZonePvP(this))
         {
             // Get drop settings
             //boolean gmStat = false; // keeps track of if player is a gm or not and if they are able to drop items
             int dropConstant = Config.KARMA_DROP_CONSTANT; // a constant used for drop chance calculation
-            //int dropLim = Config.KARMA_DROP_ITEM_LIMIT; // dropLim items dropped at most, equipped or unequipped doesnt matter.
+            int dropLim = Config.KARMA_DROP_ITEM_LIMIT; // dropLim items dropped at most, equipped or unequipped doesnt matter.
             //int randDropLim = Config.KARMA_RANDOM_DROP_LOCATION_LIMIT; // max amount of x/y units a dropped item may be placed
             double dropRate = Config.RATE_DROP_EQUIPMENT; // drop rate...
             double dropChanceINIT = Config.KARMA_DROPCHANCE_INITIAL_CHECK; // dropChanceINIT% drop chance, initial check
@@ -2440,123 +2443,163 @@
           dropequipweap = (int)dropChanceEQUIP_WEAP;
           count = 0;
           while (!(isGM() && !dropGM) &&
-             this.getPkKills() >=  dropPKLim  && rand.nextInt(100)<droppercent){
-            int droptype = rand.nextInt(dropitems+dropequip+dropequipweap);
-            _log.warning(getName()+" have karma and will be lose of items: droptype="+droptype);
-            //droptype
-            count = 0;
-            for (L2ItemInstance itemdrop : _inventory.getItems()){
-                if (itemdrop.getItemId()!=57 && L2Item.TYPE2_QUEST != itemdrop.getItem().getType2() &&
-                !noDropList.contains(itemdrop.getItemId()) && !petList.contains(itemdrop.getItemId()))
-                  if ((!itemdrop.isEquipped() && droptype < dropitems) ||
-                (itemdrop.isEquipped() && itemdrop.getItem().getType2() != L2Item.TYPE2_WEAPON && droptype < (dropitems + dropequip)) ||
-                (itemdrop.isEquipped() && itemdrop.getItem().getType2() == L2Item.TYPE2_WEAPON && droptype >= (dropitems + dropequip)))
-                count++;
-            }
-            // _log.warning("count:"+count);
-            //if have items to drop
-            if (count>0){
-                int itemnrtodrop = rand.nextInt(count);
-                count = 0;
-              for (L2ItemInstance itemdrop : _inventory.getItems()){
-                if (itemdrop.getItemId()!=57 && L2Item.TYPE2_QUEST != itemdrop.getItem().getType2() &&
-                !noDropList.contains(itemdrop.getItemId()) && !petList.contains(itemdrop.getItemId()))
-                  if ((!itemdrop.isEquipped() && droptype < dropitems) ||
-                (itemdrop.isEquipped() && itemdrop.getItem().getType2() != L2Item.TYPE2_WEAPON && droptype < (dropitems + dropequip)) ||
-                (itemdrop.isEquipped() && itemdrop.getItem().getType2() == L2Item.TYPE2_WEAPON && droptype >= (dropitems + dropequip)))
-                  {
-                if (count == itemnrtodrop){
-                    if (itemdrop.isEquipped())
-                    this.getInventory().unEquipItemInSlotAndRecord(itemdrop.getEquipSlot());
-                    itemdrop = this.getInventory().dropItem(itemdrop,itemdrop.getCount());
-                    itemdrop.dropMe(this, this.getClientX(), this.getClientY(), this.getClientZ() + 20);
-                    SystemMessage sm = new SystemMessage(298);
-                    sm.addItemName(itemdrop.getItemId());
-                    this.sendPacket(sm);
-                    InventoryUpdate iu = new InventoryUpdate(); // for inventory updating
-                    iu.addRemovedItem(itemdrop);
-                        this.sendPacket(iu);
-                    _log.warning(getName()+" have karma and dropped id="+itemdrop.getItemId()+", count="+itemdrop.getCount());
-
-                    break;
-                }
-                count++;
-                  }
-              }
-            }
-            droppercent /= 1.5;
+		 	     this.getPkKills() >=  dropPKLim  && rand.nextInt(100)<droppercent && count <= dropLim)
+          {
+        	  //first check if the person is to drop a weapon
+		      int chance = rand.nextInt(dropitems+dropequip+dropequipweap); 
+		      if (chance<dropequipweap)
+		      	//if yes, find and drop the equipped weapon.
+		        droptype = 1;
+		      // next, check if another equipped weapon is to be dropped.
+		      else if(chance<(dropequipweap+dropequip))
+		      	//if yes, find and drop one equipped item
+		        droptype = 2;
+		      else //if(chance<(dropequiweap+dropequip+dropitems))
+		    	  //find and drop an item...(exclude quest items and adena)
+		    	  droptype = 3;
+		      _log.warning(getName()+" have karma and will be lose of items: droptype="+droptype);
+		      boolean itemFound = false;// initialize
+		      while ((!itemFound) && (droptype <= 3))
+		      {
+		    	  for (L2ItemInstance itemdrop : _inventory.getItems())
+		    	  {
+		    		  //if drop = 1 and no item drop 2
+		    		  //if drop = 2 and no item check 1 if not drop 3
+		    		  //id drop = 3 and no check 1 if not check 2 if not NO DROP
+		    		  if (itemdrop.getItemId()!=57 && L2Item.TYPE2_QUEST != itemdrop.getItem().getType2() &&
+		    				  !noDropList.contains(itemdrop.getItemId()) && !petList.contains(itemdrop.getItemId()))
+		    			  if ((!itemdrop.isEquipped() && droptype == 3) ||
+		    					  (itemdrop.isEquipped() && itemdrop.getItem().getType2() != L2Item.TYPE2_WEAPON && droptype == 2) ||
+		    					  (itemdrop.isEquipped() && itemdrop.getItem().getType2() == L2Item.TYPE2_WEAPON && droptype == 1))
+		    			  {
+		    				  if (itemdrop.isEquipped())
+		    					  this.getInventory().unEquipItemInSlotAndRecord(itemdrop.getEquipSlot());
+		    				  int quantity = rand.nextInt(itemdrop.getCount())+1;
+		    				  itemdrop = this.getInventory().dropItem(itemdrop,quantity);
+		    				  itemdrop.dropMe(this, this.getClientX(), this.getClientY(), this.getClientZ() + 20);
+		    				  SystemMessage sm = new SystemMessage(298);
+		    				  sm.addItemName(itemdrop.getItemId());
+		    				  this.sendPacket(sm);
+		    				  InventoryUpdate iu = new InventoryUpdate(); // for inventory updating
+		    				  iu.addRemovedItem(itemdrop);
+		    				  this.sendPacket(iu);
+		    				  _log.warning(getName()+" have karma and dropped id="+itemdrop.getItemId()+", count="+itemdrop.getCount());
+		    				  itemFound = true;
+		    				  count++;
+		    				  break;
+		    			  }
+		    	  }
+		    	  //if no item can be found for this droptype, try the next droptype 
+		    	  //(the next most rare type after the one originally selected - see comments above)
+		    	  if (!itemFound)
+		    		  droptype++;
+		 		}
+		      droppercent /= 1.5;
           }
-        } else if (!ZoneManager.getInstance().checkIfInZonePvP(this) || !isFestivalParticipant() ){
-          //if player haven't karma and lvl>4 and chance of drop 50%
-          droppercent = Config.PLAYER_RATE_DROP;
-          dropequip = Config.PLAYER_RATE_DROP_EQUIP;
-          dropequipweap = Config.PLAYER_RATE_DROP_EQUIP_WEAPON;
-                  dropitems = Config.PLAYER_RATE_DROP_ITEM;
-          count = 0;
-          while (!(isGM() && !dropGM) && killer instanceof L2NpcInstance
-             && getLevel()>4 && rand.nextInt(100)<droppercent){
-            int droptype = rand.nextInt(dropitems+dropequip+dropequipweap);
-            _log.warning(getName()+" killed by npcid="+((L2NpcInstance)killer).getNpcId()+" and will be lose of items: droptype="+droptype);
-            //droptype
-            count = 0;
-            for (L2ItemInstance itemdrop : _inventory.getItems()){
-                if (itemdrop.getItemId()!=57 && L2Item.TYPE2_QUEST != itemdrop.getItem().getType2() &&
-                !noDropList.contains(itemdrop.getItemId()) && !petList.contains(itemdrop.getItemId()))
-                  if ((!itemdrop.isEquipped() && droptype < dropitems) ||
-                (itemdrop.isEquipped() && itemdrop.getItem().getType2() != L2Item.TYPE2_WEAPON && droptype < (dropitems + dropequip)) ||
-                (itemdrop.isEquipped() && itemdrop.getItem().getType2() == L2Item.TYPE2_WEAPON && droptype >= (dropitems + dropequip)))
-                count++;
-            }
-             //_log.warning("count:"+count);
-            //if have items to drop
-            if (count>0){
-                int itemnrtodrop = rand.nextInt(count);
-                count = 0;
-              for (L2ItemInstance itemdrop : _inventory.getItems()){
-                if (itemdrop.getItemId()!=57 && L2Item.TYPE2_QUEST != itemdrop.getItem().getType2() &&
-                !noDropList.contains(itemdrop.getItemId()) && !petList.contains(itemdrop.getItemId()))
-                  if ((!itemdrop.isEquipped() && droptype < dropitems) ||
-                (itemdrop.isEquipped() && itemdrop.getItem().getType2() != L2Item.TYPE2_WEAPON && droptype < (dropitems + dropequip)) ||
-                (itemdrop.isEquipped() && itemdrop.getItem().getType2() == L2Item.TYPE2_WEAPON && droptype >= (dropitems + dropequip)))
-                  {
-                if (count == itemnrtodrop){
-                    if (itemdrop.isEquipped())
-                    this.getInventory().unEquipItemInSlotAndRecord(itemdrop.getEquipSlot());
-                    itemdrop = this.getInventory().dropItem(itemdrop,itemdrop.getCount());
-                    itemdrop.dropMe(this, this.getClientX(), this.getClientY(), this.getClientZ() + 20);
-                    SystemMessage sm = new SystemMessage(298);
-                    sm.addItemName(itemdrop.getItemId());
-                    this.sendPacket(sm);
-                    InventoryUpdate iu = new InventoryUpdate(); // for inventory updating
-                    iu.addRemovedItem(itemdrop);
-                        this.sendPacket(iu);
-                    _log.warning(getName()+" died and dropped id="+itemdrop.getItemId()+", count="+itemdrop.getCount());
-                    break;
-                }
-                count++;
-                  }
-              }
-            }
-            droppercent /= 5;
-          }
         }
+        else if (!ZoneManager.getInstance().checkIfInZonePvP(this) || !isFestivalParticipant() )
+        {
+        	//if player haven't karma and lvl>4 and chance of drop 50%
+        	droppercent = Config.PLAYER_RATE_DROP;
+        	dropequip = Config.PLAYER_RATE_DROP_EQUIP;
+        	dropequipweap = Config.PLAYER_RATE_DROP_EQUIP_WEAPON;
+        	dropitems = Config.PLAYER_RATE_DROP_ITEM;
+        	// whites should ONLY drop 1 item max.
+        	if(!(isGM() && !dropGM) && killer instanceof L2NpcInstance
+        			&& getLevel()>4 && rand.nextInt(100)<droppercent)
+        	{
+        		//first check if the person is to drop a weapon
+        		int chance = rand.nextInt(dropitems+dropequip+dropequipweap); 
+        		if (chance<dropequipweap)
+        			//if yes, find and drop the equipped weapon.
+        			droptype = 1;
+        		// next, check if another equipped weapon is to be dropped.
+        		else if(chance<(dropequipweap+dropequip))
+        			//if yes, find and drop one equipped item
+        			droptype = 2;
+        		else //if(chance<(dropequiweap+dropequip+dropitems))
+        			//find and drop an item...(exclude quest items and adena)
+        			droptype = 3;
+        		
+        		_log.warning(getName()+" killed by npcid="+((L2NpcInstance)killer).getNpcId()+" and will be lose of items: droptype="+droptype);
+        		boolean itemFound = false;// initialize
+        		while ((!itemFound) && (droptype <= 3))
+        		{
+        			for (L2ItemInstance itemdrop : _inventory.getItems())
+        			{
+        				//make a list of all weapons dropable
+        				//make a list of all worn dropable
+        				//make a list of all inventory dropable
+        				
+        				//if drop = 1 and no item drop 2
+        				//if drop = 2 and no item check 1 if not drop 3
+        				//id drop = 3 and no check 1 if not check 2 if not NO DROP
+        				if (droptype == 3 && itemdrop.getItemId()!=57 && L2Item.TYPE2_QUEST != itemdrop.getItem().getType2() &&
+        						!noDropList.contains(itemdrop.getItemId()) && !petList.contains(itemdrop.getItemId()))
+        					if ((!itemdrop.isEquipped() && droptype == 3) ||
+        							(itemdrop.isEquipped() && itemdrop.getItem().getType2() != L2Item.TYPE2_WEAPON && droptype == 2) ||
+        							(itemdrop.isEquipped() && itemdrop.getItem().getType2() == L2Item.TYPE2_WEAPON && droptype == 1))
+        					{
+        						if (itemdrop.isEquipped())
+        							this.getInventory().unEquipItemInSlotAndRecord(itemdrop.getEquipSlot());
+        						int quantity = rand.nextInt(itemdrop.getCount())+1;
+        						itemdrop = this.getInventory().dropItem(itemdrop,quantity);
+        						itemdrop.dropMe(this, this.getClientX(), this.getClientY(), this.getClientZ() + 20);
+        						SystemMessage sm = new SystemMessage(298);
+        						sm.addItemName(itemdrop.getItemId());
+        						this.sendPacket(sm);
+        						InventoryUpdate iu = new InventoryUpdate(); // for inventory updating
+        						iu.addRemovedItem(itemdrop);
+        						this.sendPacket(iu);
+        						_log.warning(getName()+" died and dropped id="+itemdrop.getItemId()+", count="+quantity);
+        						itemFound = true;
+        						break;
+        					}
+        			}
+        			//if no item can be found for this droptype, try the next droptype 
+        			//(the next most rare type after the one originally selected - see comments above)
+        			if (!itemFound)
+        				droptype++;
+        		}
+        	}
+        }
     }
 
-    private void onDieUpdateKarma()
+    private void onDieUpdateKarma(int lostXP)
     {
         // KARMA LOSS FOR DEAD PLAYER
-        // when a PKer gets killed by another player or a L2MonsterInstance, it loseq a certain amount of Karma based on their level.
+    	//new karma loss code by team Olympus:
+		//Lose karma as a fraction of the XP you lost upon dying (ignoring how much 
+		//of that XP might be returned by ressurection).
+		//NOTE: This also provides an elegant solution for no karma loss in PvP zones
+		//and for limitted karma loss in sieges (as specified in discussions from retail).
+        // old karma loss, used when options do not allow XP loss on death:
+    	// when a PKer gets killed by another player or a L2MonsterInstance, it loseq a certain amount of Karma based on their level.
         // this (with defaults) results in a level 1 losing about ~2 karma per death, and a lvl 70 loses about 11760 karma per death...
         // You lose karma as long as you were not in a pvp zone and you did not kill urself.
         if ( getKarma() > 0 )
         {
-            // this formula seems to work relatively well:
-            // baseKarma * thisLVL * (thisLVL/100)
-            // Calculate the new Karma of the attacker : newKarma = baseKarma*pkCountMulti*lvlDiffMulti
-            int karmaLost = Config.KARMA_LOST_BASE;
-            karmaLost *= getLevel(); // multiply by char lvl
-            karmaLost *= (int)(getLevel() / 100); // divide by 0.charLVL
-            karmaLost = Math.round(karmaLost);
+        	int karmaLost = 0;
+        	if (Config.ALT_GAME_DELEVEL)
+        	{
+					karmaLost = lostXP/260;		//this 260 seems to work quite accurately.
+					// leave karmalost to 0 only if 0 xp was lost 
+					// This works greate with arena (0 xp loss, 0 karma loss),
+					// sieges (reduced xp loss, reduced karma loss as described in official forums), 
+					// and normal zones... 
+					if (karmaLost ==0  && lostXP >0)
+						karmaLost = 1;
+        	}
+        	else
+        	{
+        		// this formula seems to work relatively well:
+        		// baseKarma * thisLVL * (thisLVL/100)
+        		// Calculate the new Karma of the attacker : newKarma = baseKarma*pkCountMulti*lvlDiffMulti
+        		karmaLost = Config.KARMA_LOST_BASE;
+        		karmaLost *= getLevel(); // multiply by char lvl
+        		karmaLost *= (int)(getLevel() / 100); // divide by 0.charLVL
+        		karmaLost = Math.round(karmaLost);
+        	}
             if ( karmaLost < 0 ) karmaLost = 1;
 
             // Decrease Karma of the L2PcInstance and Send it a Server->Client StatusUpdate packet with Karma and PvP Flag if necessary
@@ -2704,9 +2747,9 @@
 	 * <li>Set the value of _expBeforeDeath </li>
 	 * <li>Set the new Experience value of the L2PcInstance and Decrease its level if necessary </li>
 	 * <li>Send a Server->Client StatusUpdate packet with its new Experience </li><BR><BR>
-	 *
+	 * <li>return the amount of XP lost, to be used for karma loss.
 	 */
-	public void deathPenalty(boolean atwar)
+	public int deathPenalty(boolean atwar)
     {
 	    // TODO Need Correct Penalty
 
@@ -2728,6 +2771,7 @@
 
 		// Set the new Experience value of the L2PcInstance
         getStat().addExp(-lostExp);
+        return lostExp;
 	}