The item color coding of Guild Wars 2
Most of the PvE drops we have seen in the beta events so far have been basic whites and fine blues – and the occasional green. Those are the items crafting professions can make, too. About the higher level and rarity items, I have no information right now, but you can expect them to be dungeon rewards and max level items, that are sold as race exclusive items in the home towns and at those vendors in LA, who stand next to Dugal Keane. I could be wrong, but a PvP character should get some items of the rare, exotic and legendary kind from the glory and karma vendors in the Mists.