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Here's another case that may have a potential impact on muds:
"Second Life is being investigated by German police following allegations that some members are trading child abuse images in the online world."
As far as I can tell, Linden Lab (the creators of Second Life) isn't being blamed, which is pretty positive - my biggest fear in such a situation would be that the mud owner could be somehow held liable.
However it does also raise some questions about privacy, an issue which was touched on in a previous incident:
"Some feared that the loss of personal information would be used to link Second Life avatars with real people - a situation that could have serious consequences for many."
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