Thanks for Bill Goffe for this link to the chronicle and a story on San Jose State Library and its link to the Second Life world. This includes a great video worth watching. Especially impressive how this video and narration presents the hierarchical organization of a web page and shows it crashing down and being replaced with areas and buildings in 3-D. They will begin using the Second Life space starting Summer 2007 to support its distance learning. The island is titled "SJSU SLIS" and you can see more at http://slisweb.sjsu.edu/sl.
Just today Case Western is the subject of using second life in The Wired Campus section of the chronicle.
SJSU's video is also on YouTube and is embedded here. You might want to review the other related videos listed on the YouTube page.