INSEAD plans to have a virtual campus within second life. The whole concept is pretty interesting.
Of course, as with any virtual world, a certain level of sustaining participation is necessary. If the school uses the virtual campus for real courses, and even perhaps create real-time exchanges between Singapore and Fontainebleu (and perhaps Wharton too), it could become a very interesting model. The concept then can aid alumni and students in job searches, discussions, and even enterpreneurship.
Nice to see such an initiative, it will be interesting to see how it evolves.