That said, I prefer Alignment bars like johnkzin mentions, and those are the ones that I use. I don’t see why, in the Law vs. Chaos scale, (using Conan’s world as an example) a Dark Wizard from Stygia who upholds his country’s slavery and brutality would be on the same Aligned side as a Paladin of pure heart.

The scale you have posted here makes a lot more sense to me, because it’s more about how the people view themselves, it seems like. I dig it.
.-= Brenton Haerr´s last blog ..Game Review: Stratego =-.

Is there a limit to how many allegiances a character can have? If more than one, are there different degrees of loyalty to each (e.g., allegiance to Odin first, King Rygar second, and the party third)?

In games with a spiritual component, it becomes a sort of spiritual residue. If you’re loyal to Odin, your “aura” has a glow that has the fingerprints of Odin to it. There’s no “detect evil”, it’s “detect enemies of my spiritual allegiance”, and etc.

I also don’t make it exactly apparent which residue is which. I had one player who, as soon as he learned magic (from a book), had a particular aura that the Paladin could now see. It was the same aura as their primary enemy. The same god had his fingers in many pieces of the pie. Some of his minions were self-serving bastards. Some of them were benevolent. Some of them were on the opposite side. Some of them were on the same side. Some of them had motivations that had nothing at all to do with the main plot-line of the story. And how you got that aura/residue might be a direct allegiance (directly worshipping a deity) or indirect (using magic that had been taught by that deity).