Hi there ppl.
This is my first post here. Before i start saying anything…let me just say kudos 
to you guys…the way this community gives support is absolutely unbielivable…this is acctually one of the few places left on the net where being a newbie among experts is not looked down upon …or rather }:-@ 'flamed ' }:-@ upon…(belive me i have some experiance in that area … in certain other forums …). I have lurked through these forums for the past 4 days
What is your UI currently like? You are already using a mouse cursor? In that case you could consider using rays to detect if you selected the board. You can use the same later on for detecting wich cell on the board of even which chess piece is clicked. There should be an example on this in the source…
As for AI, I believe there is a standardized network protocol for playing chess. If you implement that, not only can you play online against others, there's also plenty of chess "bots" that implement this.
As llama said, look at TestMousePick for selection. This will cast a ray from the mouse to the board selecting the square (you want to move individual boards squares around? Or the pieces on them?) Anyway, the Bounding Volumes that surround objects are used to detect the selection. So, for your case, you are going to want to make your squares their own objects (nodes in the tree) and combine them to form the board.
I believe there are others doing similar object movement around here.
And Welcome, I saw your name AgentX thought AgentFX (http://www.agency9.se/products/agentfx/) and thought to myself “3D Newbie? Yeah, right”
Thanks illama and mojo for replying so fast.
I will be implementing the chessboard as a