Well, there's working together and there's working together right? It seems like the characters should be made collaboratively, which will sort out the religion problems (either everyone's the same religion or they are intentionally not the same). As far as the Dragon Herald being a problem, who's to say that the other characters even know there is a Dragon Herald?

I'm also thinking about how the different ranks might interact and it strikes me as intriguing how some 3rd rank War Heralds or Troll Killers might have their paths cross with the 7th rank Dragon Herald. Is it a story of disrespect and resentment or does the noble unknowingly get the slave out of a spot and earn an important favor?

What I haven't quite figured out is how this game can exploit those kinds of interactions without becoming several parallel, but mostly unconnected narratives. Of the game's stated inspirations, I'm only familiar with A Song of Ice and Fire, but I know from that that I'm five books in and Madam Dragon has yet to meet 95% of the other characters. Even if the stories are contained within a single large city ... maybe the answer is that the MC makes judicious use of the fast forward button.