Los Angeles - mEgo, the developer of a service that lets users create personalized, Flash-based avatars that can be used across social network profiles and blogs, has raised $2.5 million in new financing, TechCrunch reported.

San Francisco - Meez, an online community where members create 3D avatars and interact in a virtual world, announced on Wednesday that it has agreed to merge with Pulse Entertainment, a provider of avatar messaging services for mobile phones and the Web.

Los Angeles - Big Stage Entertainment on Wednesday announced the official launch of its service that lets users create animated 3D avatars of themselves for posting on social network sites and other locations. The "@ctor" is created by uploading a digital photo, which is then digitally mapped, and a 3D model is then created. The model can then be customized with hair, glasses, hats and clothing, and inserted into movie scenes, TV clips, music videos, virtual worlds, social networks, video games and other media.

Boston - WeeWorld, the provider of a personalized avatar creation service, on Monday announced the launch of a virtual world where users can interact with one another via their "WeeMee" creations. To date, users have created more than 21 million WeeMees, while WeeWorld.com attracts 1.6 million unique monthly visitors to its social network. In addition to chat, the new virtual world will offer gaming elements and mini-quests where users can track down hidden objects and gain access to exclusive assets.

Menlo Park, Calif. - Emerging from stealth mode, Gizmoz, the developer of a new service that lets users create 3D talking characters and videos for use in blogs, social networks and e-mail, said on Thursday that it has raised $6.3 million in its first round of funding from Benchmark Capital and Columbia Capital.

San Francisco - Linden Lab plans to offer inhabitants of its "Second Life" virtual world the ability to purchase customized first and last names for their avatars, charging a $100 fee for set up and $50 annually thereafter, the Associated Press reported. Users currently can choose any first name but are limited to a selection of fictitious surnames; a select group of high-profile members, such as presidential hopeful John Edwards, have been allowed to use their actual last names. "Second Life" spokesman Alex Yenni told AP the company plans to begin offering the feature by the end of the year.

The virtual world has been getting a lot of coverage in the real world these days.  Second Life is becoming the new poster child for the rising popularity of avatars and virtual personalities that real people are taking on, and every day it seems there is a new development that causes those in marketing and media circles to issue another latest news bulletin, write a blog post, or move on the rise as del.icio.us tag candy.  As some have noted, Second Life and the concept of virtual worlds is not new.  This was an idea first explored in the dotcom days, but never really took off due perhaps to the limitations of PCs, and the lack of abilities for promotion.  Those barriers are gone as personal media allows word to travel farther and faster, and word has certainly spread about Second Life.