From what i can tell, every1 is in the same boat, Free-to-Play accounts are the normal playing field, but you can buy "Turbine Points" to unlock other content (like Drow, a new class, more characers, items etc) you can also earn these "Turbine Points" buy achieving quests n'stuff in game. I'm not rly sure whats been changed or added since you guys played, but it seems a v.good polished game with decent enough graphics to be free play.
The only problem is its not a MMO, like you said, its multi player Never Winter Nights.
PS. Have you played Icewind Dale? deffently the best computer single player rpg i've played