Online sounds great, but fuckin dammit I stll have no clue how it works even after reading this thread and many DS wikis online.
There's a ton of nuances to the online in this game, but here's a general overview...
While Hollow or Human form:
- Can lay down a summon sign. Other people around your soul level can summon you into their game as a phantom and you help them beat the boss. you get +1 in your active humanity and souls if you beat the boss.
- You might see the sign of a gravelord, whom you can invade and kill. These players can send powerful black phantom enemies into your world, but it's a rare occurrence.
- You can use the blue eyed orb or darkmoon covenant ring to invade other worlds if you are a member of the darkmoon covenant.
- You can use the cat covenant ring to invade other people's forests if you're a member of the forest covenant.
- You'll see messages, bloodstains, and ghosts of other players regardless of your status, and by bonfires you'll see ghosts in full color if they are in human form in their game (I think)
Human form only:
- You can now see summon signs of other players IF you have not beaten the area boss. This includes white and orange summon signs for co-op, as well as red summon stones. People you summon will be within 10% of your level (or within 20% if it's a sunlight covenant member, I think)
- You can now be invaded by other players IF you have not beaten the area boss. Invaders can be any level below you or your level, but they won't be a higher soul level.
- Darkwraiths can use the red eyed orb, or any player can use the cracked red eyed orb to attempt to invade another player's world. You can invade any player at your level or a higher level, but not a lower level.
- You can drop your red summon sign to get called into someone else's world as an invader for PVP.
- If you have dragon scales on you, you can see the summon signs of dragon covenant members and duel them for a dragon scale. I think you have to be human for this, not sure.