Google revealed one of its Google Labs projects, which the company alleges is about 20 percent done. The early preview of the technology, available at lively.com, shows that Google is working on a 3D social world meant to revolutionize chat rooms by enabling cartoon-like interactions between users.

The social networking environment is called Lively and allows the 3D virtual rooms to be embedded in any website. The room creator is able to personalize the appearance of the area, decorating it with furniture, photos and more. Users have a wide array of avatar options available. The rooms will be able to host up to 20 people which will be able to chat with each other, with their texts appearing as cartoon-style bubbles.

Google said on its official Google Blog that it worked closely with Arizona State University, and had ASU students sending in feedback. Also, the Google Desktop team added support for playing YouTube videos in virtual TVs and showing photos in virtual picture frames inside the virtual chat rooms.

Lively rooms are easily accessible without the need of standalone software. Just a browser plug-in is needed for viewing and using the Lively chat rooms, but the plug-in is only available, for now, for Windows PCs. As expected, Mac support will come shortly.

For now, the software product appears indeed just 20 percent done. There is still tremendous work to be done. Critics already noticed that Google's solution does not offer an option for companies to host private meetings inside their own firewall.

The Lively engine provides several interaction options. Besides the text chat, users can interact directly with one another by acts such as shaking hands, hugging, picking a fight, or even choking Darth-Vader-style. The latter seems like the most useful option.

We'll have to wait it out and see how Google manages to improve the interesting piece of software. They might be on to something, but to achieve success and take on the likes of Second Life there is still much to be done. It's quite clear that Google goes in a different direction compared to Second Life. I doubt that you will find BDSM activities or other adult stuff in Google's lively.

Meanwhile, the Playstation 3 virtual world might be just around the corner. The long delayed Sony Home will be released next year. However, more users will have access to the now Closed Beta service starting this summer, but at the same time, there’s no chance of seeing a PlayStation Home release in 2008. The company didn’t provide any precise release date so far.