I need a little help...  Where to next?  What areas should I be thinking about in order to develop this into a sound RPG that covers all things that a RPG should?

I have not thought about the mechanics of the game as yet, but would probably lean towards one that allows very descriptive combat (such as Wushu).

So, here is:

[shadow=red,left]The Program[/shadow]

Inspiration

The Program takes inspiration from such movies and TV shows as The Matrix, Harsh Realm, Dark City, Men in Black, The Lost Room, Equilibrium and Warehouse 13, amongst others. It also takes inspiration from the, now defunct, Indie RPG alpha concept “RUN” from Worldframe Industries (see http://web.archive.org/web/20050206045157/worldframeindustries.com/games.html or http://www.indie-rpgs.com/archive/index.php?topic=13627.0 if you would like more information) and the Wushu RPG Purgatory concept (http://danielbayn.com/wushu/previews/previewWireFu.pdf).

My objective when creating The Program was to create a RPG which had the same wire fu / bullet dodging / hacking atmosphere as The Matrix, but was in a unique and interesting setting.

Setting

The Program is exactly that – a program.  Everybody and everything in The Program is a piece of code. People are artificial intelligences that are, in general, aware that they are not "real" (note: I am unsure as to what degree I should have the world's population know that they are in a giant program. Some of my notes below assume that only some people know, and other notes assume that everybody knows...).  The known universe is a Virtual Reality (VR).

The purpose of The Program is unclear, and may be the plot hook in a major campaign arc.  I don't think I want to define what is outside The Program...

The Program is set in modern-day (or the near future) Earth.  The difference between real Earth and the Earth of The Program can be put down to a single, catastrophic event that revealled the true nature of "reality" -  a major program crash happened, devastating a large percentage of the population, or a whole continent, or something similar, leading to the realisation that reality is a computer simulation.  I have not yet decided what that event exactly is, but I'm picturing a huge portion of the Earth suddenly imploding or turning to vector graphics or somesuch.  Maybe a few hundred kilometers radius sphere of anniliated space, centred around the event.  My initial thoughts are that the event happened in recent history at the Large Hadron Collider, when looking for the Higgs-Boson particle (also known as the God particle), but it could have happened somewhere/when else too (maybe due to Nazi experiments, a Turing machine error, or whatever).  The event is basically some error (divide by zero, buffer overflow?) in the code of "reality" being unable to be properly interpreted by The Program's physics engine.

Since then, "Hackers" have been inspired to find other flaws in the code of The Program, resulting in the current game world.  The characters take on the role of Hackers.

Mood
The mood of The Program is similar to that of The Matrix movie trilogy - cinematic action involving high-powered superhumans with reality-warping, cyberpunk-like technology.
Terminology used will mirror that of modern-day computer terminology, e.g. exploits, bugs, debug, code, hack, virus, exception error, interpret.

The following is some teaser material.  I am happy to post more, but don't want to create a huge post if nobody is interested.  So if you are interested in more, let me know and I'll post it!

Antagonists
The Debuggers – This is a collection of people who believe that all the bugs, Hacking, Fuzzing, Coding, and corruption that is happening to (and within) The Program is too risky to allow. This is due to the belief that it may cause a huge integrity issue to The Program itself and lead to The Crash (aka Blue Screen), which is basically the deletion of known reality.

A lot of members of The Debuggers have had many code modifications performed on themselves to become faster, stronger, etc. in order to better find and exterminate anything that may lead to errors in The Program (which includes the characters themselves).  The most respected Debuggers have recoded themselves many times over, gaining superhuman abilities, but to the point that they have lost most of their humanity (see Modding, below). This loss of humanity causes most Debuggers to assume physical aspects and mannerisms that can make them distinguishable from a “normal” human.  They tend to wear black, basic clothes, and act emotionless (similar to Agents from The Matrix or Men In Black or Dark City). The more extreme of them have lost their hair, become gaunt and pale, have light sensitivity, and are anachronistic in fashion. Beware the feeble looking man wearing dark glasses and a bowler hat!

Independent Hackers – People that have stumbled upon methods to Mod or Hack The Program. They may or may not be Aware, and may or may not use a Reality Console to do so.  Some may think that what they are able to do is magic or miraculous, others may be starting to realise that the world is fundamentally different than they have believed all of their life (“It's the question that drives us, Neo. It's the question that brought you here. You know the question, just as I did.” “What is The Matrix?”).

Collectors – Collectors may or may not know about their true nature.  They may act independently or as a group.  “Collectors” is the general term used for someone that collects Artefacts for whatever reason, be it for power, profit, religion, or otherwise.

I like, but that's mainly 'cos I'm a major cyberpunk addict atm.

I see what you mean about its similarity to The Matrix, which would be a selling point now Cyberpunk's not producing anything of note. I reccomend you look at Cyberpunk 2020, especially the way it deals with dehumanisation through cybernetic augmentation, something similar to your dehumanisation throguh recoding.

You planning on expanding on the morally ambiguous position of the Debuggers?