"JAB - you mean we can still raid enemy towns PvP style... in a PvE server? "
Yes. There's really no such thing as a "pure" PvE server in WoW, the only difference is that the PvE server gives you the option to ignore player combat when you want to, while you're always in pvp mode on the PvP servers.
Basically, on the PvE server, you can turn on PvP any time you wish simply by typing /pvp--that flags you for pvp and allows enemies of the opposing faction to attack you. In addition, any time you do the following, you are automatically flagged for pvp: a) enter the main city of the opposing faction, b) attack a mob on the opposing faction (like a guard), c) buff a friendly player who has his pvp flag active, d) attack an enemy player who has his pvp flag active. Once active, the pvp flag remains on for a set length of time after you cease pvp activity.
When you flag is active, members of the opposing faction may attack you. You cannot attack the other guy unless he either has his flag up, or until he attacks you (as attacking automatically turns the flag on). This prevents you from simply walking into an enemy newbie area and slaughtering them.
Players not flagged for PvP have blue names regardless of faction. Friendly players with their flag on show green names. If you are NOT flagged, enemy players with their flag on show as yellow. If you have your flag on, flag-active enemies show as red.
When you raid an enemy area, the opposing side's general chat will flash with reports of "soandso location is under attack!" These reports always draw fair amounts of attention. I played on a PvE server, and there were several times I found myself in a massive PvP battle with 30 or more players per side duking it out.
The area between Ashenvale and the Barrens seemed to attract the most pvp battles by far but it can happen in any region of the game.
In addition to all this, several "battleground" zones are in the works which will flag the player for PvP as soon as you enter the area. I've already seen maps for two such zones posted on another BBS. They won't make it in time for the game's launch; I expect to see them shortly after the new year. There are also plans to implement rewards for pvp combat that aren't available from AI mobs. I don't expect to see too much pvp action immediately after the game goes live as everyone will be trying to level, but in time I fully expect pvp battles to be a signifigant portion of the game, even on the PvE servers.
The downside with the PvE server's system is it permits a non-flagged guy to just walk up to you and basically get a free hit on you if you have your flag active. This is IMO a small price to pay for the benefit of not having to put up with gankers and greifers.
Overall, I'd recommend a PvE server to anyone who wishes to utlize pvp as a secondary activity (I mainly pvp when my wife isn't playing as she hates pvp). If you plan on being a full-time pvp'er, might as well play on the dedicated pvp servers. I wouldn't recommend the game at all unless you enjoyed previous Warcraft games. Even the graphics of WoW are extremely distinctive and stylized.
I can't compare WoW to UO, having never played the latter title. I can compare it to EQ if you like as I have some experience with it (owing to the fact that my best friend and his wife are rabid EQ fanatics...they actually met each other over friggin EQ).
J_A_B