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There is opensim[1], which is used to run thousands of similar 3d worlds (shameless plug[2]), and the upcoming open source highfidelity platform [3].

1. http://opensimulator.org 2. http://opensimworld.com 3. http://highfidelity.io

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Did OS/Hypergrid ever solve the avatar/inventory issues? I haven't followed SL/OS for the last few years so my information is probably out-of-date but when I last used it, it was still a hit-and-miss experience.

still is.

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