It will work like most MMOs where everyone is in the entire world, no instancing of players or zones. However, ANet is going to use a centralized database system for their servers allowing you to freely move from server to server with ease for free. It's 100% persistent outside of dungeons/WvWvW PvP/competitive PvP/your personal story instance inside your racial city.
See my thread above for a detailed rundown of the game.

MMO-Champion
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There's a post by Maarius called "top 5 false assumptions." He would really appreciate it I think 


