Zergwatch has an interview with Age of Conan developer Jason Stone.

Zergwatch: In America, Age of Conan's big media shock is its breasts and  nipples. In Europe, they seem to take issue with violence. Funcom defends the design decision to include both in this game by claiming to stay true to the lore of Conan. In the Conan lore, there was also sex and rape among other things. Exactly how close do you intend to stick to the lore?

Jason: We have tried to stick to the lore as closely as we can. Things like racism, slavery, sex, drug use, and rape are present in the world where appropriate but as background color. You don't turn the corner and see an infamous Tijuana donkey show in an alley, but in interacting with NPC's and conversing with them you will definitely hear stories and background information that is filled with adult content. Players never themselves become involved directly in slavery, rape, or sex for example.

It's an awesome interview, minus the donkey show reference!  So don't miss it.