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Who appears in your world

In open country, players within 3 map pixels of you are in range, and crossing into the next area is seamless. In a dungeon or building, everyone inside is in range of everyone.
A room holds up to 256 players. Nearby players appear with names visible within about 60 metres.
The nearest 8 get the full Morrowind-style body if you have Morrowind Map's data. Everyone else is drawn as the classic sprite.
The Players shown at once setting (Everyone, Nearest 12 or Nearest 24) limits how many are drawn. See Settings.

Sources (15)