You create a forums account and each forum account has 3 slots for login server accounts. So, you can make 3 LS accounts per forum account. You will want to have your friends each make a forum account and make their own accounts to log in with. It is fairly simple. Once that is done, you login to the login server with that new account and any server you connect to will add that account to their database for their own records to keep track of the characters on that account for that particular server.
This website/forums and the login server both run on the same server, so they are tied together. The actual passwords you create are only stored here. They don't get sent to any other servers you connect to, so you don't have to worry about your account info being at risk.
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