Sam spawned, received a PMO (player management operator), and chose a katana as his starting weapon.
Sam began level one on a mountainside, from which he saw more mountains, some massive buildings (which he sooned learned to be the dragon emperor's palace), and a smaller building(an inn). He started heading towards the buildings until he encountered a couple by a river, stole the man's hat, and ran away.
Sam made his way to the inn, where he encountered Urvell, the innkeeper, and Pamela, another player. Pamela had been around for a while before Sam and had realized that level one's goal (objective that must be completed to move on to the next level) had something to do with the dragon emperor, who was locked away somewhere in the palace, but had failled all her previous attempts at exploration. Sam and Pam resolve to work together to complete the goal, but decide to first gather supplies before attempting.
Sam hears of a bounty on a wolf pack in the area but never manages to track them down. He does simple work for Urvell to earn some money, but immediately spends all of his earnings on a prostitute.
Pam get a job from an unkown character to track someone down in the palace, but ends up locked in the dungeon for an unknown amount of time.
Sam attempts to steal some booze, and is quickly caught by the couple he robbed earlier. A pissed off Urvell allows the couple to turn Sam in to the outsider-hating palace guard, and he is thrown in the dungeon.
Pam seduces a guard, knocks him out, steals his armor, escapes from her cell, and frees same. During their jailbreak, they encountered the couple from before talking to a group of prison guards, a fight ensued. In the fight, the peasant man turns out to be much more powerful than expected and nearly killed them, but Pamela thought to take his wife hostage, which game Sam an opening to get in one heavy blow. Sam also took an executioner's axe off one of the prison guards.
Pamela heals the peasant of his mortal wounds, and to repay his newly aquired debt to them, the peasant gives them a medalion (revealing himself as one of the seven samurai, the raccoon) and offers to get them out of the palace safely.
And that is everything so far... A good bit of reading, but it will fully prepare you for the game.