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I've never setup a Private Tournament online, and don't even know how you go about doing that. But there will probably be some sort of restriction to every site you try it on (points, time joined, BR amount, or something).
May I ask why you aren't comfortable playing against strangers? No offense, but generally people play poker to make money (some play for fun, but making money is fun so why not do both?). I'm comfortable taking both a strangers money as well as a friend (family member, girlfriend, grandmother). But if it's something because of not trusting the site, then gravitate towards the more popular sites (PokersStars, Full Tilt, etc), because they have more to worry about than jacking your $10 bucks.
And what he meant by live is not everyone together at a house on their computers. He meant everyone togther at a poker table, with real cards, and real chips, etc. We refer to poker on the computer as online poker, and poker at a casino, house, or wherever you use real cards, etc, and can see your opponents as "live" poker or "Brick and Mortar".
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