Hello godarklight,
I wanted to say I really appreciate your efforts and all the work you put into this, but sadly, after testing this for quite a while now, I have to say, this is totally unplayable. As soon as more than one player tries to control anything, the whole physics go to hell. You can't survive a reentry while another player flies something, because in that case your rocket will hit kerbin with 500+ m/s no matter what you do. Only if everybody stops doing anything while you fly, you can do a normal reentry and get to fire your parachutes at approx. 2000 meters height.
Same problems if you try to dock anything or try to land on the Mun for example. If another player clicks on anything or starts another vehicle while you try to control your stuff, you have no chance to survive. The lander / rocket begins to spin like crazy, as if SAS had lost it's effect. I believe this is caused by lag created by too many server messages. Seems like the server can't handle more than the updates of a single player at a time.
Really sad, I hoped this would be a solution, as Squad seems to have given up their multiplayer plans, but I guess it's time to put KSP to the shelf
