I started a LARP group about a year ago with some of my friends. We play the game in the local forest(yes, we have local forests in Denmark). Some might think we are actors that play out a written script, but that's not true. All we, as the "DM's" do, is we plan a few happenings, so people have something to act out from. We leave the rest to tyhe participant's imagination.
And yes, we do really fight. Not 'with a quick rock-paper-scissors match.'