At Heriot-Watt University, undergraduate and MSc students have been busy developing all manner of things. Their tutor Judy Robertson opened the island to the public yesterday, and gave out "oscars" to some of the students. It's a busy island with a lot to look at and play with, so is worth a visit.
University of East London are currently putting a toe in the water and doing some designing in-world:
Meanwhile, a PhD student and graduate teacher at Brunel University has developed a replica of his institution in Second Life, right down to the branch of Costcutters:
I'm wading through a backlog of emails and leads regarding this survey at the moment, so if I haven't responded to yours yet, I will do so soon.