I talked to a few people, and came to a few conclusions. I decided to eliminate setting teams based off of my own opinions, and decided to simply divide my writing staff amongst three main categories: Quests, Core Lore, and World Lore.

  Quests are quests. These are activities with objectives that PCs must complete for some reason; either for reward or for fun. Some of the quest writing work is based off of deciding the general purpose of the activity, but much of the work involves diaglogues (interaction between PCs and either an NPC or other object), where each reasonable course of action is accounted for on part of the PCs as well as the NPCs (or other object's) reaction to those actions. Another hard part is making them believably repeatable. Solving a problem that Bob already solved a moment ago doesn't make much sense. One of the ways we are addressing this problem is by adding in a randomization factor; there are more objectives than the PC actually completes, and only a select few are used at random; so when Bill comes by right after Bob finishes the quest he isn't doing exactly the same quest. Eventually, statistically speaking, someone will complete what Bob or Bill (or both) did, but randomising helps suspend that illusion and increases the enjoyment. There was also talk of a randomizing script that creates dynamic NPCs with different names (very useful). This would also extend the life of a quest (and make them more interesting). That aside, the Quest Writing Team (QWT) has an important job: Where you could tell someone a story, the QWT instead lets players experience it.

 Core Lore is any information relating directly to PCs. Why certain classes exist, where certain races came from or live at, spells, equipment, medicines and poisons, ect. Aside from direct class/race information, they would also discuss and create different things that PCs may be involved in that are not quest related. For example, while a guild might give a PCs jobs (QWT's department), how the PC advances in this group (rank/reputation etc) is defined with the assistance of the Core Lore Team (CLT). Where the QWT gives PCs something to do, the CLT defines their role in the world at large.

 World Lore is self explanitory, at least from my perspective. Cities need names, caves of forgotten undead (as opposed to non-undead?) ghosts need stories and legends to go with them, and even the general activities that exist outside the scope of PCs needs to be defined. The PC may regularily clear out a bandit fort, but why do they keep coming back? What keeps them so strong? The fort must have been put at its location for a specific reason, with some kind of history. The World Lore Team (WLT) defines these things, which can become the basis for both quests and other functions for the game world.

 Each of these teams are intricately tied together. Quests (QWT) need settings (WLT), which may impact the PC over the long term (CLT). Each will depend on each other, and having a defined role not only reduces the amount of work required from each writer, it also helps them decide what they should be doing.  Each team will still be under my supervision, and I'd like anyone who is interested to give me (Painwalker) or GrinningFool a PM on the forums to let us know. I'm taking all comers.