Having bounced the last post off my brother, and considering his critique (what exactly do Law and Chaos mean?), I’ve decided it would be a lot simpler to keep alignments as written in Basic D&D/Labyrinth Lord and just use the Norse pantheon. I really like Rolang’s Norse Catholicism and will use that basic idea: instead of the unorganized, diffuse religious practices of the Norsemen, the gods are worshiped in a hierarchical manner much like the Medieval Church. Particular temples may be dedicated to particular gods or goddesses, but Odin the All-father is the chief god and worshiped in all temples.
Clerics will use blunt weapons because it is sacrilegious to spill blood except to make sacrifices to the gods. Some of the gods, like Baldur, do not accept blood sacrifices either and his clerics use blunt weapons because they hope to subdue rather than kill foes.
I will keep Kraken because he is just cool. The major Norse gods are lawful, except Loki, Aegir, and Ran (Chaotic), and Njord and the Norns (Neutral). The most powerful jotuns (Surt, Thrym, etc.) are worshiped as gods by trolls and giants, and are mostly Chaotic as well.
Within Skara Brae there are several temples to specific gods, but Odin is recognized as the All-father and all lawful gods are considered his children — a few foreign gods are acknowledged in Odin’s cathedral, but their rites always invoke Odin as well. Priests of the Norse gods are usually dedicated to the entire pantheon but some are specifically dedicated to particular gods. The clerics of Thor are a militant order who seek to destroy monsters, just as Thor does, and are the most likely to become adventurers. The clerics of Tyr are the only order who may use swords (they must however cut off one hand to prove their valor!). Clerics of Loki are regarded by the populace as malicious and unwelcome, but the Church understands the importance of keeping Loki pacified.
Bruce Galloway’s Fantasy Wargaming has a nice section on Norse religion, outlining the “sins” and virtues and also providing a nice cheat sheet of who-is-the-god-of-what, so I may summarize some of that for the players and myself.