Virtual environments enable residents to craft unique digital representations of self and to establish virtual identities that may or may not resemble physical-world identities. How might this process be different for musicians who share music as their personal product and establish regular interaction with a fan base over time? This study is presented as a co-constructed, multi-vocal narrative of the researcher's experience as Flameheart Sol, live music venue owner in Second Life, representing the interplay of real and crafted identities of 7 virtually performing musicians. Using theories of normal psychosocial development (Erikson) and subject-object orientation (Kegan), the author addresses: (a) what processes contribute to the crafting of a virtual identity and (b) how the real life of the individual changes over time through the interplay of virtual and physical identities. These questions uncover the participant's cultural footprint – the accumulated culture and experiences that comprise the participant's identity before entering Second Life. The study then looks at the point at which an avatar representation of the participant is crafted, creating a symbolic device that enables the participant to shift from the "real" (in terms of being physical) to the "virtual" (lived experiences as an embodied avatar persona). It is through these virtually lived experiences, where the constant interaction demanded of virtual worlds creates an immediate feedback system, that an alternate, situated identity is developed. This avatar identity is no less "real" in terms of its reflecting aspects of the identity of the individual but reflects the unique affordances of a user-created space that is limited only by his or her imagination.

Through personal interviews and concert observations (in both the virtual and physical worlds), it was possible not only to determine what influenced the virtual identity of the subject, but also to observe the level of "embeddedness," as described by Kegan; how emotionally invested the subjects were toward their avatar persona. This embeddedness included identity coupling, identity transparency, and shared experiences with a fan base. Subjects also experienced changes to their real lives in increased music creativity, a voice for passionate causes, and a responsive global audience that offered real income.