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When I was an IMM for one game, our system automatically sent us the IP address of the player logging in. That was the only *player* information we had access to. The admin of the game had other information, because it was a pay-to-play and they had to keep updated account info on that.
As for monitoring *character* activities, I have no problem with that as a player of another game, nor did I have a problem with it as a player in any game I've played. Whether the IMM is looking to make sure I'm not cheating, or looking for an opportunity to enhance my roleplay by checking to see if I'm available for a little impromptu "mini-event," or whether they are rubbing one off behind their computer desk watching some hot mudsex.. who cares, really. I know I don't.
If the players are using a game for OOC purposes, however, I think it's *important* to monitor any suspicious behavior - such as hackers trading hack information, people offering things for sale, people attempting to get other people to meet with them in real life for the purpose of sex, etc. etc. Anything that can create a risk to the integrity of the game or its creators, or possible legal ramifications, should be monitorable.
HOWEVER
I think it's also equally important to let the players know when they log into the game - EACH time they log into the game - that their activities *can* be monitored. That isn't to say that they will be, only that the possibility exists.
That's my opinion on the matter, whether there's any legal or moral or socially acceptable/unacceptable implication in it or not.
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