Your choice of language here should be based more on your familiarity with it than anything else, as there is no technical aspect of creating a MUD that is going to favor any of the major object-oriented languages. Not even speed will be a real consideration.
If you are not an experienced programmer, Java would probably be the better deal as you would have a more encompassing standard library, as well as garbage collection. I'd recommend C# over Java, though =).
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