Hi, SkiingCougar. I'll try to help.
The game does not function using a game of diplomacy. We play it here, on a thread on the forum.
Players are divided into teams - usually there are two teams consisting of the "Town" and the "Mafia". There are usually much fewer Mafia than Town. For example in a 16 player game, 12 town and 4 mafia would be normal.
Everyone knows which team they are on. The Mafia also know the identity of the other Mafia members - whereas the Town do not know each other's identities.
The game is separated into "Day" phases, and "Night" phases.
During the day, everyone can make posts about their suspicions, make claims about their own role, and generally try to track down the opposing team. During the day there is also a "lynch" vote - whoever gets the most votes is executed at the end of the day.
In the Day phase, the town will try to root out a Mafia member to lynch, whereas the Mafia will try to hide, pretend to be townspeople, and usually try to mis-direct the townspeople so that they wrongly lynch one of their own townie team-mates.
During the Night, the Mafia have access to a special chat-room where they can plot together. They vote amongst themselves to choose a townsperson who is assassinated at the end of the night.
Day 2 begins with the assassin's victim being revealed. Based on this new information, the remaining players continue their debates, accusations, and arguments, and play continues...
Does this help?