Just heard about this. I'm sure it will make the rounds over the next month:
We couldn't make this stuff up if we tried: Lee Sheldon, a teacher of game design in Indiana, bases his entire teaching philosophy on the online game, 'World of Warcraft.' The nerdy professor coordinates several game design courses at Indiana University, and has now overhauled the grading system of his classes in an effort to better motivate students. Instead of traditional grades, IU game designers accumulate "experience points" over the course of a semester. In class presentations are now known as "quests." Whereas most students take exams, Sheldon's pupils "fight monsters." In the event that a professor assigns a group project, students quickly form "guilds."