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Friends are one's you see in real life not a bunch of Bits like 1's and 0's...
Friends are people you like to interact with. It makes no "real" difference if you talk face to face, on the phone, in written letters or real time typing.
People in an online environment are real, they are not simply sprites or "a bunch of Bits like 1's and 0's" as you put it.
Behind every avatar is a real person, you should treat them no differently to someone you would meet in the street. You should also base your behaviour on how you would like to be treated in return.
Its just a game, right? No, an MMORPG is a living, breathing virtual world. People have feelings just as they would in the real world, as do you.
You started this thread to ask what people think of you. If they are just digital things, why would you even care what they thought of you?
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"Not a place were if your not nice to someone you go to jail..."
Well actually do something bad enough, and this does happen. Do something really terrible and all the hard work you put into building your avatar could conceivably be taken away from you as punishment.
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Have fun playing or just dont play with that person...
This actually makes perfect sense. If you dont like someone, walk away. It really is that simple. Maybe you should take heed of your owns words. If someone annoys you, take a deep breath, say to yourself "its not worth getting angry", breath out and walk away.