 I’ve
I’ve
  been working on my avatar in Second
  Life. His name is Blake Wake (and he just bought a virtual island from
  Anshe Chung for
  some reason). 
There
  are two basic approaches to this. One is to develop a character that more or
  less mimics your real life persona. The purpose of this is to represent yourself
  in 3pointd space for often pragmatic reasons: the journalist or entrepreneur
  that needs to maintain a level of transparency and develop trusted relationships
  that transcend a particular virtual world. 
The other approach - one which I
  find much more compelling - is to develop an alternate persona. The could-have-been
  or the wish-I could or simply a doppelganger with better hair and fewer skin
  imperfections.
In my case I am fancying the idea of developing an avatar or two that represent
  a set of ideas particular to the virtual world. Unfortunately most of the ideas
  in virtual worlds are shovelware - ideas shoveled from the real world into
  virtual space. Some have argued this is jut what we should do - create virtual
  version of real world people, events, and transactions. Certainly there is
  a role for this, but I’m more interested in the imaginative possibilities of
  these spaces. 
There are two areas that are of interest. One is architecture and the other
  is religion. On the architecture front Blake Wake is, er, I am working on
  a "theory of virtual architecture." Or maybe it is a theory of place
  making. Either way, someone needs to do something. Most of the building going
  on in Second Life mimics real life structures. Now much of this is due to the
  fact that SL has modeled itself on the real world, even down to the problematic
  land ownership structure. Yes there is still an up and a down, and avatars
  look like humans, but you can fly and teleport yourself anywhere instantly.
  your buildings can float. Right now coming up with a "theory" is
  basically ridiculous considering the size of SL. But this is an early adopter
  playground and at some point in the near future there will be a metaverse and
  people will build places. The question is what to take from thousands of years
  of place making and what to jettison and develop new ideas appropriate for
  the varying rules of virtual spaces. Stay tuned for Blake Wake’s ideas.
 The other area of interest is religion, and many of the comments above apply
The other area of interest is religion, and many of the comments above apply
  here as well. If you think that SL and the metaverse should mostly be a place
  that RE-presents (read presents again) the real world, then having churches
  and praying to Jesus makes some kind of sense - even though there
  are so many layers of mediation going on it is befuddling. On the other hand
  - and its way to early for this - there amy be a kind of religious experience
  that can only be mediated through virtual space. If not only, then substantially.
  A virtual church is no more abstract and no less symbolic than a real one.
  More on this later as well. 
Of course the contrast I present here is in many cases much more of a blur.
  The typical MySpace or Facebook profile is in some sense an avatar, and a selective,
  online version of the person. The question is whether avatars like Blake Wake,
  insofar as I decide to distinguish him from my real life person, are substantial,
  meaningful entities. Right now they are attached to games and worlds like Second
  Life, but this will change.