To answer a question that came up: "RP" or roleplay is when you, either alone or with other players, explore sides of your character. You can do this by having a political discussion, by holding an event, by delving into their psychology for why they kill kittens - the list goes on.
At the most basic, you'll want to have a general idea of who your character is. Maybe think up an imaginary background for them (Maud's journals or my help file are good examples), which will help shape how they approach the world. Eg, if your character grew up in the home of a cruel sorcerer father, maybe they escaped to Mercinae to live a life free of darkness. Or maybe, your character got lost in the bowels of Thaumacie (don't laugh, I did this on my first newbie and it was so scarring it took me 2 years to ever return!) and is now afraid of the dark and hates dwarves.
The easiest way to "do RP" is to simply talk and EM (or emote). Paying attention to details like how you sit, how you speak and whatnot helps add flavour for who your character is and how the situation is progressing.
What you read is pretty much how it went. All of the things that aren't says are just emotes, eg, when I type:
EM takes a light seat at the bar.
Algernon sees:
Narissa takes a light seat at the bar.
One thing to bear in mind when emoting is how the OTHER person will be seeing it. Describe things from the third person point of view. eg EM tilts her head curiously, so people would see Narissa tilts her head curiously.
For ease, here is a nifty setting for zmud to echo back your emotes (since Avalon doesn't show them!), in case you are like me and don't echo commands:
trigger pattern: ^em (%*)
command: emote %1
#ec You have emoted: Name %1
(obviously, replace name with your own name. Just type EM (whatever) and you're good to go!)
One thing to remember when you are acting in a roleplayed manner - don't draw in OOC (Out Of Character) references, be that to the football match, or to some information you got through MSN - keep it realistic and based in the situation.
Good luck, be creative, and most of all, have fun! In the end, that's what this is for - to add depth and interest to your life in the land.