Online Zelda multiplayer? YES.
We here at PGC are always giddy when we see fan projects that take old games and turn them into something new. (The now-defunct Chrono Trigger: Resurrection comes to mind.) Additionally, we are somewhat disappointed that Nintendo's lack of commitment to online for the GameCube turned us to the PS2 or Xbox for our online cravings.
PC mods have been around for a pretty long time now. For those unfamilar, a mod is basically a program for a PC game that alters the game code to run the game in an entrirely different way that the game was originally intended to. Some of the more popular PC games to mod are the Half-Life and Unreal games. (In fact, Counter Strike was originally a mod for the original Half-Life, but it proved so popular that it became its own game unto itself.)
So, what happens when you have a group of guys that loved Zelda: Ocarina of Time on the N64, like to play Halo online on the PC, and combine all of the above? Well, online Zelda multiplayer, of course!
The Zelda Online Team is made currently made up of 15 talented modders who are in the process of transforming the PC Custom Edition of Halo into a spittin' image of the N64 Ocarina of Time. Master Chief is replaced by Link. The Halo environments are replaced by the Zelda temple settings. Rifles and plasma grenades are replaced by Master Swords and bombs.
To top it all off, the team is working on making online Zelda multiplayer, complete with Z-targeting! While it's still a work in progress, early video looks promising (and possibly pants-wetting), with multiple Links running around, slaughtering each other with swords and bombs being spilled everywhere upon dying.
If you want to see what the Zelda Online project is all about, with information, screenshots and video, check out their website.