Read Otherland by Tad Williams
The book is based in the future where the net is basically free, virtual reality is there and then, two of the characters play a RPG in it. To plug into your computer you either plug something into the back of the head, or view through a huge screen on your wall.
To have a free form game we're goin to have to get technically advanced enough to be able to control the characters movements with our own. But the programming and AI would be unbelievable.. but it will come I reckon, unforunately prolly not in my time
We shall see what happens tho
