The work that I've been doing with Sturart Slater at Wolverhampton University led to this paper for the First IEEE Conference on Games and Virtual Worlds for Serious Applications, held at the Serious Games Institute in Coventry on 23-24 Match 2009.
This paper presents recent work on the addition of emotions and affective behaviour to robotic avatars within Second Life, as part of continuing research and development in the area of interactive agents for games and simulations. The development is based upon the E-AI architecture  which is a proposed computational model of emotions intended to be used by developers who already have their own agent AI systems. In this work, the E-AI architecture was applied to a currently existing commercial AI and chatbot architecture.
Keywords – Virtual Worlds, Emotion Modeling, AI
Watch a video of a bot showing some of the features described on YouTube.