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How would I make it that when guards kill
monsters(only), the body poofs, so people cant just lead monsters to guards and then loot them.
Thanks ahead of time.

With a special hitscript maybe. The guards currently use the default hitscript (somwhere in the pkg/combat section I think). There's bound to be a way to write a hitscript so that each time a guard connects with her halberd that it immediately kills the target and destroys its body. This, of course, should probably not be applied if the target is a player character, but if you're feeling especially evil, you might apply it to them too.

I'm sure someone with a little more coding experience can give you some more specific advice, but I'm pretty sure that's a good place to start looking.

I avoided the problem altogether!
I was getting so sick and tired of new players luring really tough monsters back to a guard.
I have it so that you can't lead a monster too far away from it's anchor point. If you do, it simply runs back there.
After doing it this way for about 2 months it's surprisingly effective.

Regards,
Stephen Donald.

I answered this before but a board moderator seems to have deleted the thread.