If you are interested in learning more about virtual worlds for kids, mmos and how both are being designed for educational purposes and redesigning education (for good and for bad), these sources might be a good starting point.
Books
What Video Games Have to Teach Us About Learning and Literacy, James Paul Gee
Good Video Games and Good Learning: Collected Essays on Video Games, Learning and Literacy, James Paul Gee
Synthetic Worlds: The Business and Culture of Online Games, Edward Castranova
Play Between Worlds: Exploring Online Game Culture, T. L. Taylor
Online Articles
Cheating a real problem in Club Penguin’s virtual world, , Chicago Tribune, March 8, 2007
Charlotte’s Webpage, Lowell Monke, Orion Magazine, Sept/Oct 2005
Blogs
Flux - Futurelab’s discussion and debates on the latest in innovation and education
Kaleidoscope - Shaping the scientific evolution of Technology Enhanced Education
Terra Nova - Academic research into virtual worlds
Pop Cosmopolitanism - Academic studies of literacies in World of Warcraft
The Daedalus Project - The psychology of mmorpgs.
Presentation Handout