Good stuff in this thread! Keep it coming, guys.
Thanks! He didn't feature much in the campaign, but the players thought of him fondly, and one learned a lot about religion from him.
How do people create good NPC's?
1) Random determination of traits?
This is generally how I do it. I have d% charts for personality traits, driving force (what drives you to act), challenge (something that inhibits you), and mystery (something you wonder about). The players even use them on their PCs.
Heck, if the NPC is important enough, I might even roll up their background on the Life Course my RPG has (it's like a background generator, about birth condition, siblings, parents, who raised you, childhood events, and adulthood events). I rarely do this, but I have on some NPCs.
2) Based on real people you know, or perhaps combining traits from different people to "file the numbers off"?
3) Based on real people from history or current events, or fictional characters (anybody you don't know in real life)?
I don't think I've ever really done these.
4) Out of actual play, with decisions made on the fly by the DM's whim?
I've definitely done this a lot, but using the random charts has added so many unexpected and interesting situations that I'm hesitant to go back to this being primarily how I decide things. Still, even with some personality things decided randomly, there's a ton to work with, and I just fill in the blanks as I see fit.
5) Out of actual play, with the player's attitudes becoming the "truth" about the NPC?
6) Out of actual play, rolling dice to set attitudes/reactions on the fly?
I've never done these, really. But I have strongly considered have a reaction table, or something to that effect. It wouldn't necessarily set their personality, but generating their current mood or something could be useful.
My method tends to be 2, 3, & 4.
I don't think I'd use number 2, but number 3 would be cool to use, if I was more acquainted with history. Adapting personalities from current events could be really interesting, too.