I am yet another devote of Dungeoncraft 
In my last campaign, I set up an event (succession to the throne), and some notable NPCs (the various contenders) and gave the players hooks to algin with any faction, or completely ignore the main event.
To make the world alive, create some major event that is happening, like a War or some prolonged conflict/contest. Allow the players to get involed as much as they care. Allow the players to completely ignore the event.
Fairly Simple
-The Luddite

In my last campaign, I set up an event (succession to the throne), and some notable NPCs (the various contenders) and gave the players hooks to algin with any faction, or completely ignore the main event.
To make the world alive, create some major event that is happening, like a War or some prolonged conflict/contest. Allow the players to get involed as much as they care. Allow the players to completely ignore the event.
Fairly Simple

-The Luddite