Arcturus on 11 February 2010
1. The banners are merely a side quest. There are different types of banners that can be collected, each type being unique to a certain area or city. Side quests show up as blue bars in each memory sequence (where as main tasks or missions show up in white).
2. Depends on how you want to play it. I mainly avoided the guards and only took them out to save some of the towns people (optional quest), or when they were in the way.
3. Just you wait ;)
