Not really a loop, since if 1 isn't true (that it names a specific entity or thing) and the noun is being used as a common noun, then you have improper capitalization.
'improper capitalisation'
At this point I feel its helpful to mention I do all my spelling from a sort of 'internal feeling if it looks right'
and 90% of the time im right.
I guess Im just not that much of a rule absorber. I remember in school I couldnt make heads nor tails of grammar as it was so arbitrary. I think I survived on parroting and making up my own rules.
Im sorry but I dont understand your explanation.
Does it say: If you name a specific thing. (i.e. the queen.) but its used in an unofficial way, ( the queen of Norway) then you do not capitalize?
But that doesnt negate the loop of a proper noun is capitalised cause a capitalisation is a proper noun.
I think I may have to post this question on a language site. It may not be the place for this here.
Anyway, from now on Ill spell the game Oblivion with a capital, but the realm lower case and that was my question