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I understand that in normal cases an Orc would not go to a human settlement to buy/produce things. I also understand an Orc is generally too stupid, ((At least in DnD and other games)) to make their own weapons and armor. I've yet to get my password and haven't played yet, so if the answer is blantantly obvious to those who've played, I'm sorry.

Do Orcs have their own villages with their own blacksmiths and the like or do we go to human settlements?

Yes and No. Orcs have their own tribes, which may or may not claim some cave or tavern as their abode. Orcs can produce their own stuff but also can buy in human villages. Orcs are allowed in human villages, but many non-orcs will say (behind their backs, of course) that they're smelly/loathesome/grotesque etc...

Eventually, though, there should be more settlements, but it takes time. In this game, the players themselves run the settlements.

Also, in my D&D game, orcs could blacksmith their own goods.

All races are one with each other unless there is a hate towards any certain clan/guild and/or person. It's perfectly fine to play an orc that interactes with a human (Example : Irania... ). You Warcraft III junkie...

Just because you buy something from somebody doesn't mean you like them or cared if their head was removed from their shoulders.

True, but generally speaking guards of the city would be racist against Orcs and kill them. Once again, generally speaking.

Most of the guards in this game try not to be mean to other races. This is just from my experience.(but if you start a fight better watch out)