IMStar is an instant messenger that features pretty advanced 3d avatars, fully customisable, the usual sales patter. You get to dress them up. There are real-life clothing companies creating clothing lines for these avatars. Here's Roxanne (?!?! does she come with a red light? She clearly desperately needs the loo):
How long before IM and chat rooms featuring these functions start to offer challenges and "things to do"?