@Eat Lead. Here's the info as I have it:
All battles count against all opponents, Empire or not. Timmy from Asur.org (who, along with our Calvin) developed the campaign engine and web site. Alot of it is still a bit mysterious until the formal start of hostilities is announced, however, Timmy has written to us (campaign team) that essentially you fight a battle at a certain location (say, Udo's Fall) and submit your results. Since you are registered with a faction, your victory will help Stirland, your loss will hurt Stirland. If you didn't play against an Empire player your result still counts, but if you DO play against another Empire army of another faction, then there will be a bonus attributed to your submission. Also, if you actually play using some of the scenarios from the newsletters or the campaign web site, then you get additional bonuses. Therefore, the more fluffy your battles, the more in-theme they are with the campaign, the more they will help the cause. Your opponent needn't be registered in the campaign for the battle to count, but you should really encourage your friends to register, regardless of army or race.
Of course, this was how we planned it. Exactly how (and how much) was implemented in the final build will soon be made clear when the campign is fully opened for battle. That, along with the way locations are held or lost, how battles connect, and so on will be made clear in the coming week.
The campaign team is preparing a longer "how to" and a revised FAQ to coincide with the campign going alpha.