Basically the basic server/client stuff is working quite nicely, there is world map to explore including some cities, caves and so on. There are NPC’s walking around, monsters and humans and humans even talk back when you talk to them.
There is not much to do except to explore the current world, you can’t attack monsters and there is no loot or any items available yet. Inventory is not done. There are no quests or multilevel dungeons (although adding them would be couple of lines of code).
If you want to try the game, the latest little tested alpha is always available at http://tales.gamedev.org
If you want a quick look of how the game looks, here are some screenshots.