WOW, a lot happened when I didn't check the website for a day.
Ok so we definitely have enough people now so I'll start getting a OOC ready.
In terms of the questions people had:
The format will be similar to what [@Liotrent] mentioned with part of a post being focused on the general affairs of the nation and the rest focused on a character who lives there and the events of their life. Ideally I'd like each persons nation to have a few characters that they can follow, one of whom would be the leader of the nation. So for my necromancer dwarf/human nation the characters could be:
1. General Salir Hunter, head of the high council
2. Undar Sinth, a local necromancer who leads the burial rites in his village 
3. Dave, a peasant farmer
Each post would be an overview of what the nation as a whole is doing and or a snippet from one or two of the characters lives, probably showing how recent events and decisions have effected them. That said I wouldn't be surprised if most of the focus is on the leader.

As for [@UltraCraftGames]'s dragons, I'd say they would either have to be rare, so only being used under extreme circumstances or by high ranking generals, or not overly powerful, so smaller less powerful dragons who can't achieve much on their own.

[@Ophidian] I like your idea for vampires.

I'll make sure to include my rules for magic and everything else in the first OOC post so things are more clear.