Yeah it's really the best way to spend a holliday. Only bad thing is it really takes alot of time for preparation.
I've made a few paded sword's myself, using latex. Some we use real metal swords, but then any fighting in them is decided and practiced beforehand. Many Larps has no fighting at all, since they focus on other things.
I've been to about 10 LARPs (or lajv's as we say in sweden) during the last 10 years. The thing is that each year the requirements are raised a bit from last year. (equipement, clothing, housing and so on). The largest Larp I've been to had 1200 people and lasted a week.
It's setting was medival, with a few fantasy things thrown in, a new religon, and alot more. A small wooden town was actually built for the occasion, consisting of maybe 20 wooden houses, some even had 2 floors. 3 kilometers away through the forrest there were a small village, and maybe 10 km away there was a 40*40 m monestary, built with logs.
Depending on the role you played you got different amount of money (copper-coins) to start out with. There were 7 pubs in the town serving mead, thats where i spent mine
Since too many of the participants were 'adventures', search parties were organized during the days for orc-hunt. Personally i was boss over the city-guard. I was slain the last day when a demon had possesed the king, and an orc-horde attacked the town. Still no game-leaders anywhere