If I recall the Mad Monk was never actually CALLED a Time Lord. At that point in Dr Who lore even the Doctor wasn’t being called a Time Lord yet. The way I remember correctly they didn’t even give him a back story or explain why they kept switching actors until the third Doctor.

They explained the regeneration thing at the end of “The Tenth Planet”, actually, when William Hartnell turned into Patrick Troughton. But they were vague about why the Doctor could do this, implying that it had a lot to do with the TARDIS rather than his species.

The term “Time Lord” wasn’t introduced until the end of the Patrick Troughton era, in “The War Games”, when the TARDIS was recalled to Gallifrey (which didn’t get a name even then — IIRC, the planet finally got a name in “The Three Doctors”). Later on, it was revealed that not all Gallifreyans are Time Lords — it’s not actually a term for a species but a title earned by some members of that species. (In “The Invasion of Time”, a Tom Baker serial, the Gallifreyan technician Rodan referred to the Time Lords as if she was not one, and referred to the guards as if they were yet another category. It seems, therefore, that Time Lords are the elite of Gallifrey, the ruling class.)

Nevertheless, the Meddling Monk was established as being the same sort of person as the Doctor, though what exactly that meant was not made clear, as the first Doctor was not at all eager to discuss his past. Fans have widely considered the Monk to have been a Time Lord, and it seems reasonable that Stephen Moffat will follow that convention. Otherwise, one would have to explain how the Monk came to have a TARDIS and learned how to pilot it accurately.

The Doctor had disabled The Mad Monk’s time machine and left him stranded in Viking era Earth.

Not to worry; that problem was solved in the 1960s. The Monk reappeared, allied with the Daleks, later on. I don’t know whether or not they bothered to explain how he got away from eleventh-century England; the serial is one of the “lost” serials, and only a few clips survive.

I don’t remember if the Rani was outed or not, but the Meddling Monk was never confirmed as a Time Lord.

Course, if they wanted to be less messy about it and not involve the whole Time War, the Doctor and his companion could just go back to the Vikings Age and unleash him again. I vote for that one on the grounds of least likely to involve Deleks.

In “reality”, the Borg should have assimilated the whole galaxy by now/then.

One lone ship full of humans kicking back the Borg – yeah, right, and tribbles might fly out of my butt (ouch).

http://www.synapse.net/robr/dalekmask.jpg

A kid on Coronation Street wearing a human/dalek hybrid mask.