Ok here goes. Lets start with how to create a guild open your friends panel then click on guild. click on guild options to bring up this panel
If you are allready in a guild you cannot create a guild with that pirate unless you leave your guild, do this by clicking the
Leave Guild button. Ignore this step if your pirate isn't in a guild. Now you are ready to create your guild do this by clicking the Create Guild button.
Your new guild will be assigned a guild number until your guild name is approved this can take a couple of days. Now its time to choose a name for your guild, do this by clicking the Request Name button.
After clicking Request Name a window will open allowing you to type in your new guilds name. After typing the name press Enter and the new name will be submitted to Disney for approval.
Once you have created your guild now you are ready to begin recruiting members. Choose them carefully because your choices can make or wreck your guild. Its always best to go with quality over quantity, and build slowly. Sending random invites is a bad idea, just as recruiting based on only high notoriety levels is a bad idea. I won't guild anyone until I've spent some time with them in game, gotten to know them a bit and seen how they behave aboard ship and with other players. I won't guild any players who approach me randomly asking to join my guild. Some guilds are specialized some focus on SVS others on PVP I prefer a well balanced guild with a variety of activities such as guild sailing, invasions and treasure hunting at the bosses. Keep this in mind What type of guild do you want when choosing people to recruit. Also some guilds are mixed age groups while others are adult only guilds. Some guilds are a mix of basic and unlimited players while others are unlimited only. To recruit a new prospect for your guild the easiest way is to send them an invite. They cannot accept the invite if they are allready in a guild and must first leave their guild to join yours. To sent the invite click on their pirate to open their card and then click on the Guild Icon.
this automatically sends an invite which they must accept to join your guild. Its considered bad manners to actively recruit members from other guilds. I won't recruit them unless they come to me first explaining that they are looking at changing guilds.
EDIT (Nov 18, 2010 12:06 AM):
I'll add more info explaining how the guild system works in POTCO as I find time.