I'd think that SQL would be a bit overboard for something that'll probably on have a maximum of 5 clients. Anyway this is a bit of an experiment, I'm just trying to figure out how to go about doing this.

I don't know if I should make this into a flow chart to make it easier to read but if I should please tell me. Also how would one go about doing this system (Which library would I use)?

1. Client connects to Server
2. Account logs in
    - If it is new then create a new file with all the information. Account name, password, last ip, etc..
3. If there is no character goto character creation
   - Player chooses character's appearence and name. Client sends server the information and server writes it to a txt file

4. When a player moves Client sends to server to update the current x,y,z in the txt file.
5. Server checks if another player is near to send the information to the Client to draw the other player


Let me know any improvments I could make.
Thanks!