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so what do you mean by a mud???
A MUD is a 'Multi User Domain' It started out as just plain text adventures. It's actually where WoW, Everquest and etc. got started.
It's your usual run around fight monsters get experience and gold and get cool gear.
The basis can be anything from go around killing everything and everyone to purely RP with almost no fighting at all. There are also other dirivitives (Moos and Mucks) that are mainly chats set in a world (Kind of like SecondLife, but again all text)