http://wiki.guildwar...an_alphabet.jpg
I put both lines in writing and identified 12 different letters:

I have to assume this is written in English. If it translates to a cipher does not matter, from our perspective we just need to know which of the 12 signs means which letter is used, regardless of which scrambled ancient alphabet is used.
(1) English letter frequency leans towards e-t-a-o-i-n-s-h-r, so even before we take repetitive patterns into account, those are the letters we should have in our mind at all times.
(2) Letter position matters! Both sign 3 and sign 5 are our big candidates for the letter "e". A lot of vowels can stand at the end of a noun and in the middle of a noun, but "e" is different, it can stand at the end of a verb. But if the alpha shaped character "3" was our letter E, then we would have a problem, because...
(3) Grammar matters! Both lines have four distinct words, the second line maybe even has five. The word oder in English is Subject-Verb-Object. We need that later.
(4) Structure matters. One sign aside, both sentences are framed by the letters 1-2-3 and 2-3-5. If we combine both sentences and do not look at them individually, we get something very similar to the structure of a proverb or saying. "A friend in need, is a friend indeed" or something down that line. Very likely the banners have rhythm to them.
(5) Patterns matter. The sentence frame of 1-2-3 and 2-3-5 means that in the English language the likelihood of more than one sign being a vowel approaches zero. Which is an issue with letters #3 and #5. Since we need #3 or #5 for verb endings, one of them better be a vowel and another sing, or both #3 and #5 are vowels.
Sayings and proverbs have a way of not using downright homophones, but always ending up very close to one. With 2/3 of the letters being identical, we can say these word sound almost identical. Fitting two different vowels into tow three-letter words and still end up with a homophone is pretty difficult. If there only was a silent letter, such as an "e" at the ending of words maybe? The rope around either #3 or #5 being an "e" draws very close around the cipher's neck. Phonetically speaking, 1-2-3 and 2-3-5 are likely to rhyme and transcribe very similarly to IPA.
(6) Scrabble matters. There aren't that many three letter words in the English language. This is the full list. This is where I need help. Because I sure as hell do not want manually dig through the list in search for the 1-2-3 and 2-3-5 pattern alone. But this is the where we can mount the attack. Figure this out and the rest shall fall in place. I gave it two tries, found two potential candidates.
The first example I could come up with was "Age" and "Gem", being two valid words. Filling those letter then into the rest of the sentence, however, stranded me with "m" at the end of too many words ruining the chances to fit a verb into the sentence. The sing #3 would be the letter "e" in this version, but it would not take off really. At least in my mind, where not a lot of verbs end on the letter "m".
A better attempt was to assume "For" and "Ore", two words sharing the 1-2-3 and 2-3-5 pattern. The really nice thing about it is, how it manages to squeeze two vowels in there, while still sounding very similar. On top of that, the sign #5 turns into "e" opening up a lot of words in the middle of the sentence to become a verb, just like S-V-O demands. And words end on "e" just like a lot of verbs do.
My solution so far:
1st. Layer
FOR *E*R *R** ORE
* FOR *RE **E ORE
Not bad for only colliding a Scrabble word list? Half the sentence decoded by looking for a few similarly sounding three letter words with a certain letter pattern in a list on the Internet. Please someone program a tool to do it, so we can see where other potential solutions take us. I split the six-letter word in line two into two separate words. It consists of two syllables anyway and this allows for another second layer discovery.
2nd Layer (leaning out the window)
Again, Scrabble is your friend. *RE in the second line cannot be Ore, since that letter is taken, it cannot be Ere, since the letter is different. Which basically leaves "ire" as valid English three letter word. At the same time, this turns the "second syllable" into a three letter verb, which we need desperately to complete the sentence. Again, not that many three letter verbs in the English language. Especially since the "e" at the end is taken. I decided for the one that is dirt-common "use".
So either these are two three letter words with one verb in line two, or one six letter verb. Else the sentence would not be complete. In any way, this hints at sign #5 being our elusive letter "e", which in turn makes the Ore far more likely. That is a lot of convenient dominoes falling in place here. I went with the ideo of having two three letter words in line two, so I end up with:
FOR *E*R *R*S ORE
* FOR IRE USE ORE
3rd Layer:
Sadly this version kills the idea of sign #10 being "I", which would make sense because there aren't that many single letter particles or words in English. Maybe this means #10 is a glyph for something such as "and". For me it is impossible to tell, without colliding more three letter words and trying to come up with a sentence that supports an "a" or "I" at that position. There are no other choices for single letter "words" in English. The letter "i" is already taken by #11 and the second words heavily leans towards meaning "gear", "dear" or "heir". Another Scrabble word list with four letter words is your friend here. In any event, the "a" is taken and does not make much sense in the first place.
That leaves one word a mystery and that is the verb of the first sentence. Thanks to "use" in the second line it serendipitously ends on the letter "s" which is once more perfect for an English language verb. Comparing the verb [*R*S] to the word list, shows that the first letter needs to be the vowel here, else there is not a valid word in the list. Options which word in the English language can even fit here is pretty slim. Four letter verb, vowel in front, ends in third person, therefore has three letter word stem, no o, no u, no e... I came up with ARMS, as in make ready to fire. Any other choice does not make that much sense, except you want to arf or arc ore, whatever that means.
Following the proverb idea, I end up with
FOR *E*R ARMS ORE
and FOR IRE USE ORE
If "F" and "A" were not already taken, I'd say this reads "for fear arms ore and for ire use ore", which makes some sense for a banner wrapped around a giant metal weapon, but this lacks some linguistic elegance if you know what I mean.
In any event, this shows you how far you can get in trying to decipher the two banners, by colliding word lists. Maybe you have more luck or can create a program to do it for you. I hope I could demonstrate how close you can get to solving this thing by attacking the linguistic structure at the point I described. Collide 2-3-5 with 1-2-3.
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