Second Life

Second Life is an online mega multiplayer game that provides a model for what the future of open ended learning environments may entail. Within the environment, you can create content of your chose to develop an educational environment. They have also collaborated with different universities (see http://www.wired.com/news/games/0,2101,65052,00.html). I'm not sure that this environment is appropriate for engineering education, but it is incredibly flexible and may be able to be applied to engineering education.