I had a parent (Mrs. Murray) send me this link which is an amazing example of how virtual education is The Palace Museum and IBM where she works has just launched a virtual re-creation of the palace grounds, architecture, and artifacts as they were during the Ming and Qing dynasties. Beyond Space and Time is the site. To view you will need to download and install a piece of software that allows users to travel with an avatar within The Forbidden City. Much like Second Life but without the danger of the social networking.
Mrs. Murray also shared a story from the Financial Times about the project: http://www.ft.com/cms/s/0/64923fa8-9665-11dd-9dce-000077b07658.html
I think this has some great potential.