Ian Lamont has written about conducting business meetings in Second Life:
Right now, Second Life is not a great place to hold business meetings. ... I'll sum up some of the obvious problems: A poor UI, robust technical requirements, a steep learning curve, an inability to scale, and numerous distractions.
He then continues by interviewing Rebecca Nesson, of Harvard's Berkman Center for Internet and Society and an instructor at the Harvard Extension School about her successful venture into Virtual Learning. The article can be found here.
Others have found benefits using Second LIfe (pedophiles and "bombings" and instability due to phenomenal growth notwithstanding) as evidenced by the Second Life Wiki which has an impressive list of participating institutions, mostly in the US, Canada and the UK. Those institutions in Australia that are listed are mostly technological programs (film, digital) with the exception of USQ.
While I will peruse the courses of the participating institutions, I think the steep UI and the access to a reliable -- and speedy -- ISP for students remains an issue.
Still waiting for Outback Online...