I nice way to refer 'people', less harsh and more cutesy wutesy (I'll never live this down). Also good if you are feeling lazy on msn. ie. all the time. Though may make you sound slightly dumb or retarded if you keep using ut in reality.
Whilst on MSN....
other person:oks, u?
Me:verily gud, did you see how many 'peeps' turned up last nite at the party?....(etc etc)