My philosophy on character points are simple. I award them to players not to characters, so if a character dies the points stay with that player and go towards making his next character. If you wish to switch characters I will not penalize you for doing so as long as it fits within the story. If it doesn�t fit in the story then we will handle it on a case by case basis, however your penalty is more likely to be a loss of gained equipment, etc than a CP penalty.
Every player gains 1 CP for showing up to a game and being an active participant during the game. If you fall asleep during the game and wake up when its time to leave you are disqualified. For truly exceptional role-playing I will reward a 2nd character point to the deserving. I will also award a MVP award to one player each session who will be chosen by the group. This is your opportunity to reward those players who preformed exceptionally during as session and I encourage you to tell each other why you voted for that person, as not only is it a positive stroke, but it will encourage enjoyable role-playing.
Consumable Character Points will be rewarded to the group whenever anyone brings food to share, or if something is done that benefits the group as a whole for that one session. These points are available to anyone for any reason so long as a majority of the group agrees to allow you to spend the points.
Bonus CP will be awarded for services rendered that benefit the group in the long term, and these are rewarded to the player as normal CP. A good example is the reward that our webmaster has been gaining for his work on the page, or the opportunity for players to write a diary/synopsis of the game. I�ve wrestled with the idea of awarding CP for doing things such as purchasing books for me to use in the game, as I don�t want it to turn into a bribery issue. For some players its easier to do this than it is to spend a lot of time writing or programming. So long as its not abused (okay James, here are 10 books, I want to play a Juicer now) I will offer CP reward for books that directly help me in the running of the game.

Starting characters begin the game with 200 CP. Disadvantages are limited to 40 CP, quirks are limited to 5 CP, and there is no limit to the number of advantages that may be taken. Additional CP are rewarded to players who compose a background for their characters, and 1 CP is rewarded for locating a Character Image to be posted on the web page.
When CP are rewarded in game, any skills that you wish to learn must be studied first. It takes 200 hours of study to learn a new skill, a teacher who is capable of tutoring you, and one CP. You can learn a skill on your own without an instructor for double the cost in hours, but will need access to the appropriate materials.
All this means that there will be some necessary down time from adventuring if you wish to gain new skills. If you merely wish to improve existing skills then you may spend the points and do so. If you wish to spend points on gaining Advantages, you may do so as long as the advantage fits within the parameters of the story. I retain the right to refuse any combination of advantages that either make no sense, threaten the balance of the game, or for reasons that I might not be able to immediately explain could threaten the way the game has been planned to develop. Please understand that I am far more likely to either say yes, or to work with you on a proposal than I am to say no. However if I do say no there is a very good reason for it that I might not be free to explain at that time. I prefer this abstract way of handling CP to balance the needs of the game with the fluidity of the story.