I think what needs to be worked on is moving things to a central idea, less than a central location. The RP is still early and from a narrative perspective the foundations for a plot are not laid down. We have characters to introduce and a world to establish, all the while moving to some conflict at the middle of it all.
While things could have been restricted to a single town, the same problem may arise in that everyone would end up in different parts of town. And while the distance is smaller, so is the world of the character. He or she may not walk very far between home, work, and pub and so in daily Towney routine wouldn't really interact with another character. This isn't to mention the stratification of the social classes in this RP with characters who are common, new world aristocrats, and kings; if they did pass in the streets the social distances between the two would not lend to any social interaction at all.
The scale of the distance in the end doesn't matter, because the scale of the world the characters inhabit would be decidedly smaller than if they were rural backwoodsmen or even province-wide legislators on the local House of Burgess. The real thing that needs to be assumed is motion to that central plot where all characters can interact at large distances in a system of causes and effects if not in direct interaction at first. So: get some fucking patience and interim creativity and just write, I'm moving myself to some central idea of what'd be a action point, and arguably major as well.
