Found the dev interview that mentioned how gear sets work

Personalization is a big deal in this game, and this is also reflected in your appearance. The actual armor your character wears is purely cosmetic; stats and bonuses are instead conferred through crests that you socket into your armor. While it does sacrifice realism for the sake of personalization, since in the real world a pirate costume is obviously less effective than a full suit of plate armor, the crests will allow you to give your character a look you actually like, and will hopefully keep everyone from running around in identical gear. It also allows characters to become legitimately recognizable beyond the name above their head, with the idea being that you start recognizing people on your server simply based on their looks.

http://www.destructoid.com/pax-10-a-hands-off-look-at-guild-wars-2-183338.phtml

edit:

more in depth info here

http://www.arena.net/blog/a-rewarding-experience-john-hargrove-talks-about-loot

So it is purely cosmetic then, I'll change the OP.

EDIT: Actually, it's not purely cosmetic I've just remembered. It's not the first time videogame websites get it wrong, but here is how it works:

"John: Yes, each weapon and piece of armor has inherent bonuses as well as an open slot that an upgrade component can be applied to for extra bonuses. The types of upgrade components will vary depending on the item; for instance, a crest is an upgrade component that is used to enhance light armor pieces."

http://www.arena.net/blog/john-and-eric-answer-your-items-and-loot-questions

PC Gamer is revealing dungeons in its next issue where GW2 is on the cover! CAN'T FUCKING WAIT!

http://www.pcgamer.com/2010/09/27/commence-freakout-guild-wars-2-is-our-next-cover

"The reclusive masterminds at ArenaNet break their silence in this issue’s exclusive look into the dungeons of Guild Wars 2. Once you’ve read our story, you will be certain of one thing: it’ll be unlike anything the MMO genre has ever seen."

Hell yeah!! When is the next issue?

Fair enough, I figured even if that was correct it was something that could very likely change anyway but as you say, it is in fact a mix of base stats and upgrades which makes more sense and I'm more inclined to believe a developer blog over an interview.

Yeah I love that you can purchase items outside of the game, just by simply logging into a website and browsing whats available.  The gear issue is very intriguing though due to the loot drop system since everyone who participates in events, raids/instances is given an equal set of loot which leads into how super rare elite items will play into the equation, ones that belong to the best sets or quality of items that a full group of players shouldnt be able to get their hands on, rather just one person within the group.  Gonna be interesting but if all Im worried about is some equipment that I wont see or get for a while anyways once the game releases then I think arenanet are on the right track lol.

ooo I cant wait to read that!

PAX 2010: Guild Wars 2 Playable Demo

Guild Wars 2: Necromancer Gameplay on Gamescom 2010

Guild Wars 2 Live Ranger Demo (Gamescom 2010)

Some videos for everyone to enjoy.

It released october 11th apparently! :O!

EDIT: I found scans!

Summary of awesome info at the bottom!

- Cats are superior to dogs.

- ArenaNet wants the combat to be exciting all the time with "controlled chaos". Like when things go wrong in other MMOs, that's when the combat is the most fun, because players have to change tactics much more and be more on their toes.

- They go up against a big boss at one point, where things go well, and then their healer is killed. But thanks to the versatile classes and the ability for anyone to revive fallen comrades, they manage to turn the situation around, with people taking new roles as needed.

- "The controlled chaos keeps combat dynamic and exciting and generates great stories to brag and laugh about afterwards."

- Minions have many different functions. Blood fiends heal you and your allies, bone minions can be made to explode, bone fiends immobalize your enemies and shadow fiends can teleport to your enemy.

- New dungeons will be available to players every 10 levels or so, with more available in the end game.

- The first time you enter a dungeon, you enter into its story mode. Every dungeon has a story that is tied with one or two of the heroes from Destiny's Edge (the characters presented here).

- Beating the story mode for a dungeon will unlock the explorable mode, where you can experience various follow-up stories to what you saw in story mode. This mode will contain loads of hidden surprises and multiple paths that ensure different outcomes for players, so there is enough replayability to satisfy players.

- The first dungeon revealed is Sorrow's Embrace (Sorrow's Furnace evolved? Oh yeah...). A level 60-70 dungeon revolving around the dredge (that used to be enslaved by the dwarves). In story mode, you find out that the dredge leaders have betrayed their people and are selling them off to slavers, so you try to defeat the slavers. In explorable mode, you help the dredge workers revolt against their leaders, so you see the consequnces of the actions you made in the story mode.

- The second dungeon is the Ascalon Catacombs, that are filled with spirits of ascalonian warriors. The bosses are profession trainers from the first game (Master Ranger Nente, Necromancer Munne, etc.) and King Adelmen to mention some.

- Armor and weapons found in dungeons will not be superior in spec to other armor sets from around the same player level. So it will be equal to armor found through PvP or otherwise.