Create and dress an avatar, then walk around and chat with folks. Uh, that is if you have Shockwave installed, which doesn't run on Mac OS X or Linux. (Parallels running Windows XP with IE 6 works!)
Visit other people's rooms or create a room of your own for free. Though to decorate your room, you must spend Habbo Coins. Things like chairs and rugs are around a buck each ... and they have a many ways to collect your payment: credit cards, 976 numbers, prepaid cards, premium-fee SMS ... more options than a skuzzy porn site!
Overall a great idea, but the up-sell is sleazy. (Particularly when 90% of their users are 13-18 years old.) At least in real life you can scrounge up cinder-block shelving and cable-spool coffee tables ...
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