With last night's CVS commit (not yet on the downloads page) I made a couple of changes to corpse rules. First, I added the Character

eathItemLossLevel to define when a player will leave items on a corpse. That way, you can define a level for XP loss, and a level for item loss and they no longer need to be the same.
As for the actual LeaveCorpses and LeaveNakedCorpses rules, I adjusted them to allow for more options. So, once the build comes down, they will look like this:
Both rules are true - You will leave a naked corpse up until your DeathItemLossLevel at which point you will leave a corpse with items. (This is the Live like option)
LeaveCorpses true, LeaveNakedCorpses false - You won't leave any corpses up until your itemloss level at which point you will leave a corpse with items. (This is the option for those who want corpses, but don't want their db filled up with naked noob corpses)
LeaveCorpses false, LeaveNakedCorpses true - You will always leave a naked corpse. (DeathItemLossLevel is ignored)
Both rules false - Corpse system is disabled and you will never leave any sort of corpse (this is the default setting if no rule value is set)
This has changed a lot from the current system so I wanted to give you all a heads up, as you will most certainly need to adjust your rule values if you are using the corpse system.
Of course, you can get creative and if you wanted say a system that always leaves corpses with items but never takes XP off the player, then set LeaveCorpses to true, DeathItemLossLevel to 1, and DeathExpLossLevel to a level higher than your server's max, etc. Things like that would be cool on a PVP server.