Of course vbGORE would be able to handle it.
I like the idea of #2 the most by far. Rarely in an online RPG you will permanently alter a character for dieing for the worse. Its going to result in a bunch of players who are too paranoid to go fight anything hard, and very pissed off if they do die.
As fun as it would be seeing yourself undead when going back to your spawning point:
- It simply makes no sense, since you die but now have 2 bodies
- If the zombie was anything like your character stat-wise, it could be abused to make "death traps" in lower-level areas
If you do that, I would recommend you make them equally as strong, if not weaker, then the zombie that killed them. If you make them equally as strong, anyone who dies by a boss or anything of the sort would be too strong. You could just leave them there as kinda a "fun, but useless" feature.