Here is a more detailed example of how the quest system could work. In the Afternoon update the Master would post a quest IE. I want the Sword of Ajunta Pall. The student who provides me with it will be greatly rewarded. Now a student would give the order to search for the sword at the sacrifice of training the student would PM the GM saying that they want to search. The GM would respond with a list of challenges the player must overcome.
Example:
(You exit the Academy, the first things you come by are a flock of Shyrack.)
(You continue walking to the Valley you soon see Ajunta Palls tomb upon entrance you encounter a pack of Tukata.)
(Continuing on you walk across a bridge, and finally arrive at the sarcophagus. You attempt to open it but it is locked.)
(You retrieve the blade and hurry out of the tomb, unfortunately droids activate and start firing at you.)
The student would reply to this and give there actions for each event.
Example:
(You exit the Academy, the first things you come by are a flock of Shyrack.) I attack the Shyrack.
(You continue walking to the Valley you soon see Ajunta Palls tomb upon entrance you encounter a pack of Tukata.) I attempt to sneak past the Tukata.
(Continuing on you walk across a bridge, and finally arrive at the sarcophagus. You attempt to open it but it is locked.) I bash the lock.
(You retrieve the blade and hurry out of the tomb, unfortunately droids activate and start firing at you.) I run away from the droids and out of the tomb.
Some of this should be familiar to players of KOTOR. If the player succeeds the update would read, one of the students ventured into the valley and successfully retrieved Ajunta Palls Sword. There could also be a Knowledge ability in which a student could gain knowledge of a player going to retrieve a artifact and could try and intercept the other player of the other player is successful they will duel and the victor will take the artifact and present it to the master for prestige.