From what I can tell, it works. Me and Squilliam have both played using my copy of the beta, though we have yet to try and play simultaneously.
@DMJ: You're a Lieutenant now?! Fuck. That's what I was before our stats got wiped. >=(
Also, if you notice, the "weight" you're talking about prevents people from getting into the strafing showdowns typical of console FPS. You know what I'm talking about, when you're running at a guy, and he strafes past you, and you just end up going in circles around each other looking like retards.