[Drake49]

Making it work:
Evil Players:
Rather than counting on 'sportmanship' to make evil players follow the rules, let's give them a simple, logical, reason to be paranoid maniacs.

The victory conditions for each evil race are simple:
1.Eliminate all good and neutral players.
2.In order for an evil nation to win, the one aspect of the evil god that their evil aspect of the god truly hates must be defeated. This evil nation is their secret enemy.

In plain terms, each evil nation is told, on recieving Turn 1, which evil nation is it's secret enemy and must be defeated in order for them to win. Keeping this in mind, each evil race is free to share whatever information they like with other evil nations during pretender creation.
A few explanations:
A.There are no face-offs. The evil nation that you must destroy DID NOT recieve your nation as it's secret enemy. Thus, the nation that you must defeat is the only evil nation that you can be certain is not out to destroy you.
B.If all good and neutral players are eliminated, and only evil nation A has been eliminated, then only one evil nation wins, the evil nation that had evil nation A as it's secret enemy.
C.In no evil nations have been eliminated at the time all good and neutral nations have been eliminated, a wild internal fight will break out until one evil nation achieves the victory conditions. That evil nation is the only winner. The only exception is if multiple evil nations are eliminated in the same turn.
D.If more than one evil nation has been defeated at the time all good and neutral nations have been eliminated, then all the evil nations that have eliminated their enemy evil nation win.

That should keep the evil nations playing evil.

Neutral Nations:
To keep them from being elinated immediately, each neutral nation should start with 15 immobile Watchers in their capital. This makes rushing them virtually impossible.

Good Nations:
Given the problems added to evil nations, and the difficulty of a neutral nation defeating everyone else, a complete ban on Death and Blood is reasonable. A ban on blood-hunting to a nation with no blood hunters isn't very much of a restriction anyway. You are the only nations who can completely work together and don't have to worry about trying to kill each other. If you can't make that work, then your going to lose! However, banning non-death non-blood spells in addition is over the top.