Second Life ruled the Web 2.0 hype machine in 2007, but things have quieted down significantly there in recent months.

Make no mistake, though: SL’s virtual world is buzzing, even if the buzz is less deafening.

In a recent Fortune article, Senior Editor David Kirkpatrick says the masterminds behind Second Life insist the virtual world is thriving. In 2007, users have spent more than 220 million hours in Second Life (compared to 51 million hours in 2006), and more than 100 colleges and universities are holding classes in Second Life. Those same masterminds say Second Life may be on the verge of some important breakthroughs that will make it even more popular and useful.

Philip Rosedale, CEO of Linden Lab, which created Second Life, told Kirkpatrick the priority for 2008 will be to improve the user’s SL experience. That’s certainly welcome news, since parts of Second Life continue to be somewhat difficult to navigate and confusing to use.

Kirkpatrick says Rosedale also “is very excited about one technical improvement — adding HTML Web software. Currently,” Kirkpatrick writes, “you have to click back to your browser to see Web content. Soon the Web will work right inside Second Life. A building could have its walls papered with the Web. Multiple avatars could surf the Web together or even share a whiteboard using Flash technology.”

Advances like these will make Second Life easier to use and more powerful at the same time. We’re hoping they will also enhance the CPA profession’s presence in Second Life and turn CPA Island into a must-see Second Life destination for CPAs, clients and students alike. Stay tuned for details about the progress we’re making in creating a definitive CPA experience in Second Life.

Have you visited Second Life yet? What are your thoughts?