Lanefan
Victoria Rules
Both as DM and player, I tend to ham it up at times, depending on the character (some lends themselves to such things more than others). It's just more fun that way. 
As DM, I'll also chuck in the occasional over-the-top stereotype NPC...usually a wizard whose ego is only bounded by...well, nothing, or a Cavalier who is so hide-bound in his (or her) sense of honour as to be nearly non-functional. People either find these fun, and play their own characters accordingly, or awful, and try something different; either way, all is good.
Lanefan

As DM, I'll also chuck in the occasional over-the-top stereotype NPC...usually a wizard whose ego is only bounded by...well, nothing, or a Cavalier who is so hide-bound in his (or her) sense of honour as to be nearly non-functional. People either find these fun, and play their own characters accordingly, or awful, and try something different; either way, all is good.

Lanefan