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Law school eh? Good luck. I graduated in 1998 from the University of Georgia School of Law. After a clerkship, I decided I did not want to be a lawyer. The degree and the knowledge are continually helpful in my business life.
I will address your main points quoted above:
1) Work for Hire: Nobody ever said all work created is a work for hire. But generally, if you are "hired on" somewhere (even in a volunteer capacity) contributions are going to be viewed by a court as work for hire. Furthermore, most muds (and certainly all well run ones) have terms that all new builders/imms/etc. agree to before they start contributing code. These generally make it very clear who will *OWN* the finished product. Since these terms are agreed to in advance and without coercion, they will almost definitely be enforceable.
2) I am not sure why you are so hung up on the consideration issue. You seem to be operating under a common law student falacy that consideration must have a real, monetary value in order to be valid. It does not. Providing the mud upon which to build stuff is in and of itself more than sufficient consideration. Further, most muds also provide some degree of training, lessons, etc. in coding or building. That training is also valid consideration.
Whether or not there is valid consideration is a VERY low standard in contract law.
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