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A MUD is kind of like a text adventure game (did you ever play Zork?),
but with multiple players simultaneously, so you can interact both with
the dungeon (and its critters) and the other players.
A MOO is just like a MUD, except that it is extensible: the players themselves
can create additional parts of the dungeon, or add new objects/creatures
to existing parts.
This is off-the-cuff, so if anyone has a better definition, please post it.
Take care,
Michael Priestley
mpriestley -at- vnet -dot- ibm -dot- com
Disclaimer: speaking on my own behalf, not IBM's.