The other players in the game are represented as NPCs to each individual on their computer. It supports only 2 people running around Cyrodiil. The current version (being only an alpha) is pretty limited in it's capabilities. All these combined with a little luck (and a whole heap of code) and voila, we have multiplayer! At the moment, MultiTES4 consists of three components: A client application, a server application, and a Oblivion 'esp' modification file. It's come a long way, and has a long way to go, but with perseverance and a little luck, it'll go a long way. I started the work on this project around the 7th of May, 2006.
MultiTES4 is my attempt at an Oblivion mod/add-on that, you guessed, adds multiplayer to this awesome game.