I've been readin up on it on the WWIIOL board, it's beta right now but seems to have few restrictions for testers. You create an online avitar, build houses and such but can also have weapons of some kind. Not sure how it works but the WWIIOL guys had a house going and dressed themselves up in fatigues. The neighbors got mad because they had a sort of The Sims neighborhood going where they would just meet and chat. The WWIIOL guys started shooting, they attacked back, etc...

They say it is The Sims with guns.

Made me think of you just becaue you expressed an interest in having a virtual avatar type game. This game may be worth a look to you.

http://secondlife.com/