Yesterday saw Google Labs launch the beta version of a program it’s calling Lively.

Lively seems to be a more contained version of Second Life. Users create an avatar (what the avatar looks like is, similar to Second Life, completely up to them), then they design their own room, pick out furniture and invite friends in to chat. Rooms can be embedded in blogs or websites with the goal of giving people the chance to experience another dimension of the web.

Niniane Wang, Engineering Manager at Google said in the company’s blog that the search giant spent a lot of time working with college students at ASU. Students tried out the program and gave feedback into what they thought might work better for Lively. It’s thanks to this research with the Arizona State students that users can have their own personal photos in the picture frames in their rooms. They can also play YouTube videos in the virtual TVs.

Similar to Second Life, Lively incorporates a certain amount of avatar interaction. Sure, you can chat to anyone that comes into your room but there’s also animated avatar actions like hugging and by the looks of the promo vid, punching someone in the face.

Unlike Second Life, the content is not user generated so you won’t have the same semi-organised chaos you have with Second Life. You’re not about to see a gargantuan man with cloven feet fly overhead with a bow and arrow that will transport you half way across the blogosphere.

Users can also choose whether or not their room is listed in the public directory or whether it’s private. You can also choose the level of access your visitors have in your room and whether or not they’re allowed to add furniture or objects.

Let us know what you think of Lively and if you think it’ll take off. This isn’t the first time we’ve seen this kind of 3D chatroom (who remembers Habbo Hotel, the 3D chatroom geared toward teenagers?) but we think it could be immensely popular with fan websites or similar.