okay guys, i'm planning to play the game without consulting a walkthrough at all, but I just wanted to clear this up first:

what happens if I die? Is there a counter or a limit to the number of times that I can? Do I lose/gain anything by dying? In short, SHOULD I allow myself to die once in a while?

Also, when I attacked a giant skeleton in the mortuary and died, when I came back to life, they were all neutral again instead of hostile. is it like that everywhere?

The game depends upon you dying to get past a couple of places, the only real disadvantage as per such is an often long walk back.

And no, those mortuarry skeletons are kinda "nice", everyone else will be hounding your tail (dont piss off any Abishais in town you dont know if you can handle you hear me ;)

Try to avoid dying as much as possible. It makes the end game easier. However, that said, there is no overt penalty, at the moment of death, to dying.

There are places where dying is beneficial and even required. You also don't want to die by being eaten or by pissing off an extremely powerful being -- these cause you to suffer a permanent death.

Thinking back I can't think of anytime when it is possible to get eaten. Did I miss something?

And no, those mortuarry skeletons are kinda "nice", okay, thanks guys. last question before i start for real :D so lets say that i take out the whole mortuary and spare only the scribe, the girl that stitches me up and the dustman that shows me out. does this have any good or bad impact later on?

Yes. This is not a hack-and-slash game where it's advantageous to kill everything in sight.

You Definatly Should Not. You do not want to start killing everything you see. It's hard sometimes i know, but until later on in the game a great deal of the XP comes from quests and such(this is still true later as well, but the baddies start to give decent XP too). Hope this softens the blow.

okay, thanks for the input guys. Guess I wont be killing anything except the zombie which holds the key out of the first room.

Don't go that far; kill as necessary. Just don't get a hold of something's arm and become a one-man wrecking crew because you can't be permanently killed.