I was talking to one of friends about MMO games and he brought up one called "Entropia Universe," as his dad is apparently a beta tester for one of their upcoming expansions (Next Island.) Anyway, the thing that makes this MMO so unique is the in game currency which has actually monetary value. You either send them money for in game currency (PEDs) or they can take your PEDs and send you money! Also, the game itself is free. Does anybody else know anything about this game?

Not the first time I've heard of a MMO that pretends like their money is real. Second life has a currency system where you can buy and exchange the on-line currency (called Lynden Dollars) for real money and vise verse. It's suppose to be possible for someone to make a living in this virtual world by making something over there, that everyone would want to buy and then exchange the Lynden Dollars for real cash. You have to have an awfully high virtual income though. The exchange rate is somewhere around 300/1$

In games like World of Warcraft and Eve online there are players who sell on-line currency to other players for real cash. Those are not official trades though and I know that Blizzard bans such activities. I did hear though that players with ultra high virtual income in Eve can start buying their subscription with the virtual currency.