Part of the problem is how this starts in the first place: trade chat. Garbage in, garbage out. We've never had a problem this bad, and because we have guild allies, the one time it someone bashed us in trade channel for being gkicked, we had 3 other guilds defending us, even that was unnecessary in the long run (since no one cares about an angry loner).

Mr. Andrews' second suggestion is best IMO, especially the server event one. Do something no other guild is doing and it'll attract those who know that the game isn't all about raiding. The problem is that your guild sounds like it's only about that.

Trash talking in trade will get you put on the ignore list by more mature players- it doesn't matter if you're right or wrong, but the fact that you're tied in public drama stands out as a hassle. Ditching the guild name may help alleviate this, but unless something big changes, it'll remain an issue. Ask yourself why you made your own guild and why you can't join an already established one. As many people know, every guild claims to offer raiding, and these days, it's not uncommon to hear guilds claiming to be "social" guilds that offer "raids, rbgs, heroics, and more!" What's your "and more"? Highlight that and you'll do well.

What few people realize is that a guild isn't just a raid group. Any guild can raid, though success varies. If you're just looking to succeed, be prepared to shop and hop around for a long time. If you're looking to do something different than other guilds, high light that! For example, The Earthbound prides itself on being a community world pvp guild. We have multi-faction server events and actually help other quality guilds with recruiting and running their own events, including raids. No other guild on the server can boast the same thing, and you'll see few other guilds who can manage it.