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Currently, banning people from towns is a rather silly thing. If I wanted to, I could come into town when you're not online, or if I'm strong enough go into town anyway and beat the dirt out of you. Or I just run. Either way, its a pretty silly thing, and very ineffective.
Now some settlements have gatehouses and walls, and I think they should be allowed to keep certain people OUT. Obviously you COULD give people keys and lock others out, but that's a rather silly idea, since you'd want other people to come in. So I suggest... town guards.
The doors of the towns with gatehouses will be permantly locked, amongst each door there shall be a townguard, which when talked to, will teleport you across the door. (Its not roleplayed as that, but rather him allowing you to cross). This shall also keep monsters from gettign through, another good thing.
The real use of the gates is to ban people properly. Each guard/trusted person will have two items (lets call them scrolls) - a scroll of judgment and a scroll of forgiveness (names off the top of my head).
Each town would also have a quest-status tied to it, which the guards will check. The status ranges from 1-20 for each town. When a guard uses the scroll of judgment with you, and you do not move for a number of seconds (to prevent abuse), your status increases by 5. An lstate prevents you from being scrolled again until a while has passed, so you can't stack it up.
When the guard examines you, he'll calculate random(19) + status. If the number is greater than 20, then he will not allow you to enter. This means that a status of 10 has a 50% chance of not letting you in. If you aren't allowed in, another lstate prevents you from trying until a while has passed, so you don't keep trying till you enter.
If you REALLY want to enter, you should be able to bribe a guard. If this is the case, then the status increases by 1, and you pay an amount proportional to your status, and he'll let you in.
A player guard may (if you successfully enter the town and are caught) use the scroll again with you, increasing your number. So a person who assaulted once and was warned has a 25% chance of being blocked, but a person who entered and was caught doing somethign illegal again, has more of a chance of not entering.
If no increases are made after a while (24 logged in hours?), the status decreases by 1.
The scroll of forgiveness resets your amount to 0. If you REALLY want to get back in, bribe a REAL town guard

*exhale*
Discuss.