The Sims Teach German -- Video Games for Foreign Language Learning - Google Video

This is a really interesting presentation on the use of video games for language learning.

This particular presentation focuses on the game Sims2. At first, I thought that the approach was much too focused on reading, but the presenters really do go on to make a case for using this game to work many aspects of language.

I think that this is the best use of existing games that I've seen. Most projects focus on expensive development of games that are outdated before they can be released. This use focuses on somewhat easy and quick modifications that can be made for language learning (or other topic even).

I'd recommend that you check it out.