It will work like this:
Player 1 opens up the game.
Player 1 logs into the game.
After being authenticated with the server, player 1 has the option to join a fight with another random player who is also currently logged in. There could be thousands of players logged in fighting and waiting to fight.
Once Player 1 clicks the fight button, he is put in a queue that checks to see if there is anyone else waiting to fight. Once 2 participants are ready then they are matched up against each other in a ring and they fight one another.
That is the whole concept of the game...its going to be very simple...and I do not want my players to have to have a creators club membership just to play the game.
So should I go with lidgren, or can this be done with the XNA network API (which is what I would prefer using)?