So, my client and server is running and everything, so I test some stuff out.
I walk up to one of the people in the test map and touch them. Nothing happens. A message is recorded in the System log saying Admin has touched. (or something)
I try combat. Same thing. Nothing happens. A health/strength bar appears next to mine in the top-left, but nothing actually happens.
Can you post of copy of the messages you see in the system log?
Can you clarify what you mean when you say "Nothing happens"? Some things don't yet have animations, so even when they do happen you won't see anything. Sometimes the only indication you will get will be a message in the chat window.