Common areas instanced?

I've only been playing... hrm... less than a week... BUT...
I've run around quite a bit getting to lvl 11 and I see TONS of people in "towns" but I don't believe I've ever seen another player character outside of town.
This leads me to ask, do we know, are all areas but towns instanced to players or groups?

Thanks in advance :
Wolfbone

Yes they are.
Once you leave town or outpost with a party, you have the whole world to yourself/party.