On the test server, all chars are going to get backed up, and then wiped.
Then you will be free to creae a hero/villain from scratch. This char will be auto leveled to 40 for a test of the new PvP zone - Recluse's Victory.
More info at:
http://boards.cityofheroes.com/showflat ... ost5584766
It would be good to test out chars you've though of but didn't want to spend time to get to 40.
I stress this is test server only!