[quote=eddieddi]
It confuses the shit out of me, and It'll often mess with the flow of the RP, for instance do I interact with him as 'you' or as 'him' does he interact with us in second person as a first person would or third as we would? its also a self insert, which will often cause players to be over protective of their caricatures resulting in a refusal to suffer fair injury or the abuse of powers or loopholes in rules. You are naturally more protective of yourself than something you control, and by using the self insert of 'I' and 'Me' you instinctively treat the caricature as a extension of yourself and thus worth the same protective instincts. 
I am not trying to be rude here, this isn't a conscious decision of the player to be over protective but rather a subconscious reaction built in to all humans as a survival instinct.
Look at it this way, If something of mine, EG lets say a book. was about to get burnt, so long as its not utterly irreplaceable, I would try and stop it but not suffer a mortal wound to halt the process. However, if someone was about to burn me at the stake, I'd probably go to the extreme lengths of doing things like breaking my own legs to escape. The same is applicable here, my caricature is just a creation of mine, a book, or a cuddly toy of sorts if you will. where as if one was to use the self projection of I, one is firstly projecting a power fantasy of wishing to be more than one is (Not that I care about that, everyone has there own daydreams) but one is putting the caricature upon the same level of value as one's own well being, thus will do irrational things (from a outside view) to protect such a object of value. The problem with this is that such a proposition cannot be disproved because of the above statement, The removal of this self insert would be equivocal to dying, however that would not happen if he could prove that he is capable of taking a hit, thus his own (over protective) logic states that by taking a hit now he can keep the self insert which will lead to further complications down the line due to the wish to keep the self insert preserved as it is an extension of ones self. He would do something irrational (such as take a hit on his own terms of a minor degree, EG a scrape, or a arrow to the lower arm.) so that he may avoid the elimination of the chance of avoidance of grater problems at the moment, (removal of first person use and thus self insert) which will lead to problems later on as he does not wish for this extension of himself to be harmed.

Can you see how the use of first person becomes a issue? I'm not saying he's a bad role-player, or that he's going to do it consciously and is choosing to do such things. infact I'm saying the opposite. He's a fine roleplayer (I can see that from the style of his writing) and I doubt if he had a choice he'd do such things as above, but, as with all things human, sometimes we just don't work the way we want to.
Sorry for wall of text I just cited a essay of mine from Alevel physiology discussing the use of third/first person in conversations about one's self.
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Eh, I see it differently. There's already going to be many confusing parts when reading an IC thread, mainly because posts often backtrack on the same topic in order to add substance into their post. While first person can sometimes add to such a problem, it can also alleviate confusion in the process. With first person, I find it much easier to convey emotions and thoughts, due to how I'm seeing the world through my character's eyes. With third person, it can sometimes be hard to figure out what the poster meant when his/her character was doing something, but first person allows the viewer to get a better understanding of the character's motivation, due to how it is more natural to explain such things in first person. Furthermore, while dramatic irony (something amplified by first person) can be confusing in some places, it serves as a much needed catalyst to character interaction, as well as interaction with the world around the character. (BTW: First person doesn't change how you would normally interact with the character)

On the topic of first person leading to god-modding, I can see where you're coming from, but I wouldn't jump to conclusions just yet. While this may be true for some, the characters I roleplay are rarely an extension of myself. In fact, that would get quite dull, so I make sure my characters are distinctly different from me. Sure, they may have some of my mental, emotional, or physical characteristics, but rarely do they match my own. (I mean, I've never been a girl) On the topic of god-modding, yes I do have a stronger connection than I would with third person, so yes, I would want to try and protect my character, but it works both ways. I have to enter this persona to post, so every time I have to mimic their emotions, which allows a much more tangible view of my character, as I often have to slave over details and get to know my character in the process, allowing for more natural characterization. 

I hope you see where I'm coming from.