watched it yesterday, but didn't find the time to respond...
two things I noticed:
1) you send the position every 30 frames. That doesn't sound good to me. as you yourself state in the video (if I remember correctly), not every client will run at the same fps. That means you get more updates on some pcs and less on others. That's not good, i think. Instead, you should update every 8 ticks or so:
var timePassed = 0;
while(1)
{
timePassed += time_frame;
if(timePassed >= 8)
{
timePassed -= 8;
update();
}
wait(1);
}
Second thing I noticed: The animations look weird. What I would recommend is to not send the animations over the net at all (it's an mmo game, after all), instead see the distance that the entity has covered in the past frame, and animate accordingly, depending also on the direction whether you show a strafing animation, or walking forward or standing still etc.
The overall surrounding/setup of the game seems nice and solid, I like it! Especially the way the tools get put into the characters hands is very nice

Sometimes the other player seemed to hover... you should prevent that, it doesn't look very nice.