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Lively keeps things simple and does those simple things well. The television in our sample room is playing the trailer for Dr Horrible's Sing-Along Blog. A few clicks is all that is required to link a YouTube video to a television object -- but as far as we know, no other embedded video formats are supported.

All content that is currently in Lively is made by Google-approved developers, and is presently free -- though it looks very much like the majority of content in Lively will be pay-for before long.

If you want to interact with an object (sitting down, for example), single left click on the object. If you want to play an animation, single left click on your avatar, and select an item from the animations tab (different lists of animations are available depending on whether you are sitting or standing). And ... that's actually about it. Lively is simple, and straightforward, and focuses on doing one thing well: The furnishable 3D chatroom. It can be embedded on a webpage and your avatar can be in multiple rooms at once via different browser windows or tabs. If you've got a group of up to 20 people (who all have Google accounts and are running Windows), and want to share a Youtube video or sit around and shoot the breeze in a lightweight space, and having your own content isn't for you, then Lively is for you.

But a rival to Second Life? No more so than corn syrup is a rival for sea salt.

"I describe the mistake companies made like this: Imagine you've never been to Manhattan. You cross the George Washington Bridge, and someone hands you a guidebook. The first place you're going is not the Reebok store."

She calmly explained that the previous failures of Second Life were a result of not harnessing the medium appropriately

The Weather Channel, Colgate, and CareerBuilder.com have figured out how to interact with Second Life's virtual denizens in ways that impact real-world attitudes.

Why A-list companies are returning to the virtual world.

a place to engage customers.

West has rewritten the rules of corporate marketing on Second Life.

Fundamental lessons have been learnt, and these firms will reap the rewards by being well positioned to take informed advantage of future VR developments. And fundamental developments are essential that encompass service delivery stability, ‘in world’ governance and behaviour policing, legal and copyright protection, a shift away from ‘virtual reality is just a game’ consciousness, and mainstream user adoption.