Alignment
Alignment defines a character’s side in the eternal war between the forces of Order and the Chaos Gods. It does not necessarily determine a character's allegiance, morality or actions. Alignment is mostly used to determine how a character is affected by certain magical elements in the game. The three alignments are Order, Neutrality, and Chaos.
Those who possess divine powers must be Orderly. Elves and Magic-Users must be Chaotic. All others are free to choose their alignment.
Order
The universe has an ultimate, irrefutable truth, and a flawless, unchanging plan towards which all events inevitably march. As time moves on, all distraction and resistance to this plan falters until everything is in its perfect state forevermore, without alteration or the possibility of possibilities. Those who belong to the Order are part of an inevitable destiny, but have no knowledge of what that destiny is and what their role will be in fulfilling it. So they are forever looking for signs and omens to show them their proper way.
Chaos
The howling maelstrom beyond the veil of shadows and existence is the source of all magic. It bends and tears the fabric of the universe; it destroys all that seeks to be permanent. It allows great miracles as reality alters at the whim of those that can call the eldritch forces, and it causes great catastrophe as beings we call demons (and far, far worse) rip into our reality and lay waste to all. Everything that is made will be unmade. Nothing exists, and nothing can ever exist, not in a way that the cosmos can ever recognize. Those who belong to Chaos are touched by magic, and consider the world in terms of ebbing and flowing energy, of eternal tides washing away the sand castles that great kings and mighty gods build for themselves. Many mortals who are so aligned desperately wish they were not.
Neutral
To be Neutral is merely to exist between the forces of Order and Chaos. Mortal beings exist as Neutral creatures, and remain so throughout their existence unless taking specific steps (often unwittingly) to align themselves otherwise. In fact, most beings would be rather displeased with the notion of pure Order and Chaos, as they are defined in alignment terms. Even most who would claim allegiance to Order or Chaos are not actually Orderly or Chaotic. In the real world, every human being that has ever existed has been Neutral.