Can you play more then 1 character, and have them in different races? I am asking because with 1 mega server, and alliances locked in based on race, and PvP being AvAvA, are they going to let us play more then 1 character from different races that will put us in different alliances, and if so how will that effect PvP with "spying"

You can have more than one character, it can be a different race even a different faction if you choose.

Spying is rarely as big a deal as people think.

And just to confirm you can have multiple characters tho we don't know how many slots yet.

People in different factions can talk to each other, but friends and guild members of different factions can never be in the same Cyrodiil.