hmm the move problem i have no idea about. you might be downloading the sounds and maps which can take quite a time on some computers. you can however hear the other people getting whacked. how to set up your own server: in your audioQuake folder in program files, there is a program called zqds.exe. run that and you're fine. if you're on a router, you need to have the port 27500 opened for this to work. in that edit box in zqds you can do administrative related tasks. to play, you must start audioQuake as you normally did, then in the console type connect localhost (localhost is one word). most  settings of your server you can set in the file server.cfg in the ID1 folder. as for modding, i don't yet exactly know. i know how to change the maximum ammo, but i don't know where to look for, how to make the grenade launcher a machine gun with flying bombs everywhere, and know how to change th bot names. i created a mod with 175 bot names!!
oh, and one last suggestion: please check out www.tbrn.net/modgirl. there you can find the audio quake and star wars mod source code, plus a handy dandy modding tutorial to get you started.