I am going to sound like a fanboy for mentioning Neverwinter Nights 1 again (and, while it isn't free, it is cheap nowadays), but it does allow MMO-making. A bunch of people have made what is called a "Persistent World" there, basically a non-paid MMO made by community, there are tons of them there. I've seen star wars, lotr and even harry potter ones there. The game has nice modding tools, too, so it isn't as hard as would be otherwise to make one. It uses the 3rd edition D&D rules for the most part. I'll start doing some preliminar work on it today, but without at least a Mudokon model, we won't be able to get this thing running decently(we don't want an orc-looking Abe, do we? :P). With just a mudokon model we would already be able to have different Mudokon tribes, characters, and have our PCs fight hostile Mudokon tribes or something of the like. Environments, visual effects and etc. are much easier, and we can use what the game already provides.
If anyone has managed to extract models from Munch's Oddysee or Stranger's Wrath, that would help a lot too.
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