I seek help putting my scrambled knowledge together >.< my brain hurts! I have read that u want to keep messages at 1kb and less per second. I would like to send things at a 200ms rate or 10 times a second which means 200 characters every 1/10 second. Next i read that u want to send the data that's closest to the client. if a character moves that is 2 units away and one moves thats 30 units away u send the ladder first. Is this nessisary or would testing whats furthest away to be sent in the que last be a total waste of power. If i can send 200 characters each "Packet" what about chat where ppl will type in a like a 200 character message to their freind this would cause massive lag on their part if they are in a busy place such as a market where everyone and their brother is sending a chat message. Bottom line Is all this management of packet size nessisary? is 1kb per second too tiny? and what do i do about chat with the long messages?

People are really poor at typing long messages at sustained rates -- unless they are paste-spamming, and your chat service should probably just throttle their messages if they are. A single chat message of 200 bytes won't matter much to the overall jitter of the channel.

1 kB split over 10 times a second means 100 bytes every tick. At 200 ms intervals, you have 5 sends a second, which means 200 bytes per packet, assuming 1 kB/second data traffic.

You can use up to about 4 kB/sec without too much trouble on all but the suckiest modems -- of course, it'll cost you 4x as much in bandwidth costs if you have a lot of customers online at the same time, but it's certainly doable. If you aim for people with DSL or cable, you can even increase that to something like 12 kB/sec (beware that the uplink from a single user won't necessarily be that wide, though).

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Imho the movement data is more important

A lot of MMO players probably beg to differ :-)

In reality, if you worry about bandwidth usage, then you need to manage each kind of bandwidth. You need to always allow some chat through, else some group of people will walk into the auction zone and "move-spam" by running around like crazy, starving out the chat channel. You need set budgets for each kind of data, and you should only borrow from the other budgets if there is a glut of data of one kind, and the other kind is currently under-utilized.