I am wondering is it possible to have voice chat in a multiplayer game? And if so how could that be implemented?

Sure it is possible. You would need to write a plug in to do the dirty work. Look into the DirectSound Capture interface. Once you can capture your sound from the mic, you can just send it like you would any other data over the network. Then just have the reciever play it back. You will probably have to sacrifice some quality in order to stream the sound efficiently over the internet. You should also look into some sort of compression. That will help reduce the amount of data you have to send. Look into Ogg Vorbis. It is a free compression library with very similar performance and quality to mp3.

Cool, Ahh a plugin.

I am looking to make a multiplayer game basically thats standard with voice chat. I don't worry to much about quality of voice however I would want the sound to come directly from the character and depending on distance away from you would the be volume of the output. Wouldnt want everyone blaring each other out.

Is that possible? Probably same answer, i need a plugin lol. I do not know how to code a plugin to do that, is there any websites around that would have such a plugin already coded?

Your talking about 3D sound, right? I don't think you need a plugin for that.

I believe he is talking about capturing sound from a mic and broadcasting it to other players across a network. Definately plugin territory.

Why wasting your time writing plugin, thare are allready programs like ventrillo
and they are doing the job quite well (didn't try, friend told me. They are using that program for America's army.

Or Teamspeak from teamspeak.org. It doesn't do exactly what you're looking for, but its perfect for multiplayer games.