I belive the 2002 referance is to the 'Rigby/Finn' situation. Nutshell: An admin abused his adminlyness and was forced to either give up his Adminship, or give up his Playership. He chose to give up his playership. (He had been a player here for nearly 3 years at the time, and was very attached to any character he played.) Recently, he has decided he wishes to be a player again after a long hiatus, and his admin status has been remomved, alowing him player only access to the game.
Do a search for more details.
Now, as to a philosophical discussion of IC and OOC. First, again, I must reiterate the terms as they are:
Character = a persona, an alternate ego, a ficticious entity used to interact with the game world.
IC = In Character
OOC = Out Of Character
ICly = To behave in character, to move into character, to act without OOC motives, to act in context of the situation in a manner applicable to the character.
OOCly = to behave out of character, to move out of character, to act with motives that are out of character, to act out of context in a manner that is counter to the established nature of the character.
What is it to be in character and out of character? It is a dificult line to look at, and Buddhabrand has a point in saying that there is no definitive distinction between the two, at least on a higher conceptual level. But I belive his usage is based on a different set of terms, those being that IC is often used as a synonym for 'In Game' and OOC is used as a synonym for 'In Reality/Off Game'. In direct terms, this use of IC/OOC terms is not quite correct, and for a decent to excellent role player this usage is irrellevant. I will explain that later…
This distinction, where IC/OOC equates In Game/Off Game, is complex. For example: Instant Messangers. This technology gives players abilities to discuss things Off Game that have pertinance to elements In Game. Is this bad? That all depends on the ability of the person involved. For an excellent role player, this is not a problem. For a mediocre to poor roleplayer, this is a devastating practice which results in the character acting out of context in a situation. Acting out of context almost ALWAYS leads to some form of unethical game play.
So, I know all this semantic jibber-jabber is a pain. So I will give an example, and you will have to allow me my personal arrogance in it, since I consider myself to be an excellent role player (though feel free to disagree!)
My 'ALT' or 'Character' is Nicadeamus. Now, when I 'play' Nicadeamus (at any level of quality) the character becomes a persona. In fact, it becomes the dominant persona. We all have multiple personas that we move between during the day. Different people get to see different persona's. (IE: You act or are different around your family than around strangers on the bus.)
Now, for myself, when I allow Nicadeamus to become my dominant persona, the persona that is 'Marcus' is subsumed into the background. Also, the persona that is 'Iga' is subsumed into the background. Effectively, they cease to be the motivating driver behind the actions I take in the game.
In effect, I cease to be Marcus, and become Nicadeamus, with all of Nicadeamus' motivations and desires.
Then, when my time for game play is over, I subsume the Nicadeamus persona and bring the Marcus persona back to the forefront.
THIS, in essence, is the nature of IN CHARACTER.
ALL players do this process, but it is the degree to which one can allow a persona to achieve dominance that indicates the ability of the roleplayer.
So, YES, the Marcus persona (my 'key' persona as an individual) knows ALL sorts of things. It knows everything that Nicadeamus knows, and Iga, and Marcus. Marcus is my core persona, so has to know these things. But when I am fully Nicadeamus, there are HUGE tracts of knowledge that are unavailable to the Nicadeamus persona. It is still in my brain, but Nicadeamus does not have direct access to it. To access it, I have to flip to Marcus, then flip back to Nicadeamus.
And that shows in roleplaying quality.
In a single sentance: To be In Character is to participate in controlled schizophrenia and multiple personality disorder.
That, in a nutshell, is my metaphisical view on In Character and Out Of Character.