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Mongol Raid says:
"All Others: -10 PP & Improvement"
City Walls says
"Losses -5 In Mongol Raid & Wars no Viking Raid"
We played this meant all players with City Walls lost -5 PP and did not lose any improvements.
Does this seem right?
City Walls just reduces the amount of losses by 5 PP for either a Mongol Raid or when you are in a War. If you lose 5 PP in a war and it gets reduced by 5, you pay nothing.
You STILL lose an Improvement however and Viking Raids CAN NOT be played against a player with City Walls.