This thread is full of spoilers I imagine so I won't read...through it, but I will say this:
The bonfire keeper at firelink shrine died. I found her clothes, wore them for a little while :P. But the thing is that the fire is out and it is irreversible...damn it... Was this inevitable? I didn't meet the keeper, only saw the white glow of items when she died...could I have saved her? No fire at the central hub almost makes me want to restart the whole thing...but I won't

Edit:...AND, since she died and I never talked to her, I won't be able to upgrade my health flasks to hold more health ever... joy...

Yes you can save her but you also could have saved her before she died if you knew who was behind it.

Guys what happens if you kill the crow that takes you to the dead asylum?

Well invaders are always at a disadvantage in comparison to those they invade. Invadees can heal with Estus and can summon 2 more people to help them fend off invaders, so it's common most of them resort to cheap tactics and such. I once invaded on Dukes Archives and had to fight with three people, the invadee and two helpers, and it was one of my most fun invasions. 

I can hold out my own against the dinos on lost izalith, even without Strong Magic Shield since their attack patterns are quite easy and you can goad them to use their butt-stomp often which leaves them wide open. I never had any trouble with invaders on lost izalith (especially if you tone down the Gamma on your TV to get rid of the nasty bloom effect of the lava). 

I think some of the worst invaders are the Forest covenant ones, but most of the times they've got a reason for it, since there's no level limit for invasions there. You can read in this thread some of my experiences with them, to the point of fighting 3-1 with TWOPs and Crystal Ring Shields. 

Invasions is all about killing the host in the most effective way. PVPs (with the Red Soapstone) should be a different matter on the other hand, since that's supposed to be an honourable duel (as you have to accept it), though I have seen a lot of cheapness from the people who summon red signs (as waiting on top of the summon sign and cast TWOP for immediate backstabs). 

All in all, those are the consequences of playing online in the game. I take on all challenges, be them fair or cheap, lasting seconds or a handful of minutes, since that's the fun of it, you never know how the people on the other side will react.

You gain some souls and won't be able to go back to the asylum on the current playthrough. Plus you get an hefty amount of sin added to you.

Sin?

And how many souls?

Actually you don't gain some souls, sorry about that (had to check since I didn't kill him myself). When you drop his health to 0, he simply flies off. Sin is added to you every time you either:

- Attack and/or Kill a NPC
- Get an indictment after invading a player
- Betray your current covenant 
- Exchange covenants without requesting to leave your former covenant from the guy on the top of Undead Parish

Sinful players are hunted down by the Darkmoon covenant (and you can check how much Sin your character has by checking the Book of the Guilty, sold by the same guy on top of the Undead Parish), the more sin you have, the higher the probability you'll be hunted more often by Darkmoons.

its the darkmoon covenant restricted the the 10% soul level rule when Invading and being summoned?

For invasions via the Blue Eye Stone, it's restricted to the 10% SL. Being summoned via the ring, no restrictions, just like the Forest Hunter ring. Though the game always seems to pair you up against much higher SL players.

ive noticed i keep getting summoned to a player in Anor Londo who wears the Smough armor and it seems hes seriously good at the game, ive never beaten him and ive also been summoned when theres been another Darkmoon Covenant member whos also there. and he taken us both out with ease. he must be soul level 250 or something, because im 201 now with my first and only character but it seems i no match for him.