Laue:
Just to be clear, the reason I wanted you to tone down your character was because you wanted to start out with, and I quote "Serilya, the Crimson Blade ... it is more powerful than any other sword currently known to exist." as well as "magical" armor and mage-killing magic. You toned your character down to a reasonable level, so no complaints about that, nut what Krodin has come up with is a totally different kind of character.

Krodin: I'd say you've sufficiently toned down the magic part of the character, but would you be offended if I suggenst you put some kind of visual effect on arcane crush? My big problem with it is that it can (if you choose to) be a one-hit kill with no chance to save. With a visual effect at least you can see it and (if two players would get in a fight) the opponent can choose wether or not to get hit by it. 
One last thing and then you're set. If you could turn down your "immensely gifted" swordsmanship a notch? I'm half expecting you to become the leader of a warband here due to your sword, am I correct?

Of course these changes are not permanent, we will all grow stronger during the game, some might even become powerful enough to join the warriors and battle demons head on. This is just to start everyone off at about the same power level.

Most of my balancing in games comes from imagining the player characters fighting each other, and if one has a definite advantage, that guy needs tobe scaled back a bit. Of course, I'm open for discussion, so if you feel differently, be sure to let me know.