The Australia Council (Inter-Arts office) are offering $20 000 for up to three people to facilitate a Second Life residency:

“The residency allows for a collaborative team of up to three people (including a writer, musician/sound artist and digital visual media practitioner) to develop inter-disciplinary artwork in Second Life.

Applications will only be accepted from teams who fulfil all the residency requirements, including having the necessary artform experience. Artists or writers who have professional experience in more than one of the required artform areas can include this as part of their submission.”

The full details here and you have until 27th July to apply.