Lively by Google?

Lively was a network of avatars and virtual rooms created and decorated by its users. Google launched Lively on July 8, 2008 as an experiment in providing people with more ways to express themselves on the Web.

Lively's users created thousands of cafes, bars, discos, tropical islands, treehouses, space stations, galleries, bedrooms and more. Lively's users shared their rooms with people from all over the real world, meeting and chatting with each other via their customized avatars.

The experiment ended December 31, 2008.