I don't know why I never visited here, but a colleague alerted me to the Estonian government's Second Life island (click here to teleport.) Given the level of e-government innovation that happens in Estonia, I guess I shouldn't be surprised that they have been in the virtual world since December 2007. I've heard that Estonia has some of the highest levels of internet penetration of any Western country, so they are clearly ahead of the digital curve.
The sim is quite lovely, featuring a fanciful and elegant central structure that is all sharp angles and combined open and closed spaces. In terms of functionality, the island is a showcase for Estonian culture (displaying artwork and videos from local artists), tourism (providing info about getting a visitors visa), and government (with links to various ministries and officials). There's even a giant magnifying glass focusing on Estonia on a floating globe, in case you are unclear on where it's at (which I was.)
Check out the blog of the SL Estonia Embassy for more info and upcoming events and exhibits.