Make sure you have the latest version of Java 7 installed as it is required by every Minecraft Server. Download
Minecraft Server.exe from Minecraft.net into a dedicated folder, like C:\MinecraftSharedServer.

Run the application, to bring up an interface window. As soon as the “Preparing spawn area” messages are finished, a line will pop up that says “Done.” Type “stop” in the text field and press Enter. Your new Minecraft world is created and now it’s time to configure it.

Whatever directory you saved the Minecraft_Server.exe file, you should see two files called “server,” one of which is a properties file. Open it inside Notepad and you’ll see a list of server settings followed by an equal sign and a value. By changing the values you can alter many things about your Minecraft world. Most of the default values should be fine but there are some you may want to change.

Gamemode - This setting is for the type of world you and your friends wish to play as the default is 0, which is the basic survival mode and changing this value to 1 will change your server to creative mode.

Difficulty - Difficulty is clear in its name as the values can be changed from 0 (peaceful) to 3 (hard) depending on what you wish to play on.

White-list is used to keep others off of your server so this is important if you want to just keep your server between friends. Back in your Minecraft server folder, you’ll see another file called white-list, open the file with Notepad to make your white-list username list. The first player you’ll want to add is yourself, type your Minecraft username into the top line and add each of your friend's usernames on their own lines. Save the file and you are done.

Any player directly connected to your router will probably be able to see your server over the network but if your friends will be playing from their own house, you’ll have to configure the router so that it forwards port 25575 (TCP) to the server.

Once you’re all set up to receive outside connections, start up your server again by running Minecraft_Server.exe and test it out but first Google “what is my ip” if you don't already know it. This is the IP address others can use to connect to your server. That's it, you are all set!.

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