Alignments

There are 5 alignments in Warhammer. These are:
Law
Everything is a part of a rigid order. Ideally there is no ageing, death, etc. Decay, death & disorder are created by chaos, so Law and Chaos are in constant opposition.
Good
Good characters are concerned with natural well-being. Standard stuff like social hierarchy, helping others & settling things peacfully are recommended. They can be forgiving to evil-doers, unlike the Lawful people.
Neutral
The standard PC alignment, as it's easiest to play. Strong belief in the self interest and doing things as they see fit. Wary of either extreme, but generally apathetic and interested in getting by day to day.
Evil
Evil characters enjoy causing harm and pain'. Ruthless, prepared to kill even friends and comrades if they stand to gain. Law and order is nothing but a potential mean to and end.
Chaos
Stability leads to stagnation, and obviously any social behaviour, natural order and physical permenance must be stopped asap. This generally leads to unpredictable, mentally unbalanced and psychotic characters.

Some races have limits on which alignments they can have (see races) but here is a summary:

The ways alignments can be changed are as follows:

Mental trauma
The is reflected by the number of insanity points the character has. When this number reaches a critical level a random or chosen mental affliction occurs to the character. A possibility is a change of alignment.
A character voluntarily changes
Not recommended, and requires the GM's express permission. Only granted if there is a real reason why, and assurances that they will stick to the new alignment, and play it realistically.
GM enforced change
If the player is persistantly playing the character wrongly then the GM can force the character to change alignment.
In all of these cases, alignment can only be changed one place (ie from evil to good in one change is not allowed). Also the race restrictions on alignment must be maintained.

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