This is how the rules stand as well as I know them:
Combat is coded. When you type 'attack <someone>' you enter into combat. This is used so that people have an unbias way of determining the outcome of conflict.
Though Combat is coded, it is perfectly acceptable to RP fighting. If I emote a swing towards your head, you have the opportunity to RP your reaction, i.e. being hit, or ducking. However, I may decide that I don't want to waste my time with that kind of RP. In my opinion it's a waste of RP when there's a perfectly good system in place to determine what happens.
This topic is similar:
Eventually, there will be a coded way to disguise yourself. There will be IC objects that based on your diguise skill and some stats will allow you to fool others as to your true identity. Others will have the chance to discover who you are with other stat checks. etc etc…
It is Perfectly acceptable for me to change my description (within' reasonable boundaries), and wear clothing that hides my @nakeds. But does that mean someone HAS to play along with that kind of RP?? No...we admin do not enforce that. If someone who ICly knows who another character is, they would know them despite what clothing they wore (if they choose). But is it perfectly acceptable for people to play along?? OF COURSE! that's the fun part.
Now if you don't know the name of the character, then disguised or not, you only know them by a description. And not until you ask someone who DOES know them, either by pointing them out or giving them a description, can you find out their 'NAME/TITLE'.
My suggestion (and it's just a suggestion) is that people make up their own minds and stick with it. DO NOT get into arguments over who knows what? If Nic's in disguise (using clothing) and Gerik doesn't want to play that way, then he has the right. But be consistent. Don't change how you play based on the circumstance. Don't play along with your friends and then don't play along with you IC enemies just so you can have the upper hand.
Another suggestion is Yes...do something with you Title so that someone entering the room sees, "Oh...they're doing something different." etc. If you want to mention OOC that you're attempting to disguise...then do so. But what I find the most fun, is to try and wait for people to slip up in their RP...give something away. That's the whole fun of the game is trying to be flawless in your strategies or to cover up your mistakes well :)
Does that satisfy everyone?