Skill Challenges

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I just read the skill challenges news item on the DnD homepage and was wondering if anyone is planning on using skill challenges in your adventures. I would love to but I'm not sure how to set it up.

Do you inform the PCs that it is a skill challenge and which skills they should try to use?
Do you just tell them, to use the example from the news post, that the Duke at the head of the table is capable of easing the next stage of their quest and nothing else?
Do you say, "By the way this is a skill challenge put your swords and beating-sticks away"?

I love using things other than combat to get results. I am a DM that thinks a failed diplomacy check shouldn't always result in DM: "Roll initiative" and a failed forgery check shouldn't always result in NPC: "Guards help!" DM: "Roll initiative." If you could write out how the skill challenge would go from the very beginning that would be the most helpful reply I could get.
I just read the skill challenges news item on the DnD homepage and was wondering if anyone is planning on using skill challenges in your adventures. I would love to but I'm not sure how to set it up.

Do you inform the PCs that it is a skill challenge and which skills they should try to use?
Do you just tell them, to use the example from the news post, that the Duke at the head of the table is capable of easing the next stage of their quest and nothing else?
Do you say, "By the way this is a skill challenge put your swords and beating-sticks away"?

I love using things other than combat to get results. I am a DM that thinks a failed diplomacy check shouldn't always result in DM: "Roll initiative" and a failed forgery check shouldn't always result in NPC: "Guards help!" DM: "Roll initiative." If you could write out how the skill challenge would go from the very beginning that would be the most helpful reply I could get.

Well, keep in mind that we don't know that much. Based on the tidbits we've picked up, I can give you a rough rundown that may have some inaccuracies.

1) DM decides to make a skill challenge (he can probably do this on the fly if he needs to, but we'll assume pre-planning for tradition's sake.)

2) DM decides what the skill challenge is about (request aid from the duke, for example)

3) DM decides on success and failure outcomes (failure doesn't have to mean "no", it can mean "yes, but with complications/penalties")

4) DM decides how many success the PCs need and how many failures they can have before they "lose".

5) DM decides if there are any special restrictions on skills (limited use, penalties, special requirements to use, "immunity" to certain skills, etc)

6) DM sets (or maybe looks up) the appropriate difficulty range.

7) In play, the DM decides the PCs are in the skill challenge (he might or might not tell them)

8) DM sets up the "conflict".

9) Roll for initiative (optional?)

10) PCs describe what they're going to try and then actin in initiative order (or maybe they describe and act in initiative order).

11) DM decides on skill PC uses and difficulty.

12) PC rolls and roleplays, or roleplays and rolls, or maybe roleplays, rolls and roleplays more.

13) DM responds, descriptively, with roleplay.

14) If successful, PCs earn a success, if failed, PCs earn a failure. If the DC was hard and the PC succeeded, there's some kind of "bonus" (extra success or +2 bonus to next roll?). If the DC was easy and failed, there's "suckage" (extra failure or -2 to next roll?).

15) Go to next PC in initiative order until and repeat 10-15 until somebody wins.

That's a rough breakdown and doesn't do the "roleplaying" or "play cleverness" justice. An actual example of play would probably be much cooler.

Hope that's of some use (and I hope I didn't make too many mistakes).
If you get a chance, look at the very robust social skill rules for the Legend of the Five Rings RPG. They allow for a wide range of effective action to be taken through use of noncombat skills. I doubt the 4E designers looked at them as a model or anything like that, but I get the impression that their intent with skill challenges parallels what L5R pulls off pretty well. From what I've read so far, I'm impressed.
This is already being discussed here.
Thanks sorry, see you there