Seems to work fine using the Arma 2 beta patch with the latest Dayz update, had great fun last in a 3v3 stand off at the south airfield using direct chat :P
Walking about is fun at first, but after a week of playing it's become a total drag to the point I've marco'd keys to walk for me. I'm also finding after a week the game is getting very repetitive (for me at least) and I'm finding less and less to do.