My first encounter with Machinima and of course Craig Lyons (I still can't believe he has an avatar. It's Craig Lyons everyone....himself) was in University of Western Australia during the award ceremony of National Space Society in Second Life Machinima Contest. (See the contestants here: http://www.nss.org/contests/2ndlifevideos.html ) It is unbelievable how we can actually make movie in SL environment, using avatars as the actors.
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