Originally posted by mrgoldenbrown:

How do mods work in multiplayer situations? For example, the "monsters drop loot faster" mod sounds awesome. If I have that mod, and I'm playing on a server with one of my buddies who don't have the mod, what happens?

Depends on the mods. Some are client-side, some are server-side.

If they are client-side, then other players won't need them. If they are server-side, then usually all players will need it.