My bad, POD definitely can run split screen multiplayer. I just discover that i need to set one using controller and another one using keyboard. Very fun to play.

Rainbow 6 is a great difficult tactical FPS.

Heroes of MM3, as many said.

I've got IL2 a little while ago and have been very impressed. Lots of people have difficulty playing multiplayer.

If you can get Empire Earth (1 and 2) or Lords of the Realm 2 running good, they have multiplayer. LotR2 has a few bugs that made it impossible to battle for us, but we could still do the army movements and economy.

As others said, also, Neverwinter Nights. I've put more time into that game than any other -- probably combined.

I've played through Arcanum of Steamworks and Magic Obscura and it's hands down one of the best RPGs ever. Multiplayer has a slightly smaller world and there's no fast travel, but hey, it's still Arcanum