The Gartner Hype Cycle has placed virtual worlds on the climb up the Slope of Enlightenment. While some authors in the past have made much of the educational use of virtual worlds languishing in the Trough of Disillusionment, there has been a community of authors, designers and educators working to further understanding of the limitations and affordances of such technologies. It is time to pool this knowledge, experience, tools and practice to solidify best practice, focus research on development of specific elements and forge ahead to shape the third wave of educational virtual worlds. This paper attempts to outline this information and practice while offering solutions for further development.