No. It's the guild. I think it's a thousand guards that you have to kill in one sitting for balverine guards to start spawning. Of all the guard and balverine creatures, the monster guards are the strongest.
Note of interest: When it was discovered that Peter was high off the noxious gases from of the fecal matter pouring out of his mouth when he boasted about all of the things that weren't really in the game, LionHead tried their best to do some PR damage control by telling fans to do this and "see what happens." It was an easter egg that they half-revealed to gain some shred of credibility back.
