-- Fact or Fiction? We chose to write this post as a story, but we also tried to make sure we discussed nothing that wasn't in the actual game. You can assume that anything the characters describe is something that you can do or something that can happen. Yes, that means characters whose Morale is in the toilet might suicide.
-- Capital Letters? Did you see what I did there with "Morale" instead of morale? Phinney capitalized words for actual game systems and components. Morale is a thing to be measured, monitored, and manipulated in State of Decay. So is Pride. Other capitalized things refer to facilities, things to be built and managed - Watchtowers, Infirmaries, Bunkhouses. Y'all working on various wiki projects will have a field day with this!
-- When Did This Happen? In terms of game lore, this "handbook" was "written" before your game experience begins. Remember, our story is that you were on vacation when the outbreak hit. That means everyone else was suffering through the start of the outbreak while you were fishing. What is described is what they all learned before you even knew anything had happened.
I know you have followup questions. I will gather your Qs from this thread at the end of the day Monday, January 14, for our now-traditional followup community Q&A.