Multi-User Virtual Environments (MUVEs) have gained more prominence in education of late; however, the question of their theoretically sound implementation remains relatively understudied. The current article addresses this gap through the explanation of how a MUVE platform Second Life was used in an undergraduate course for pre-service teachers. Instructional decisions are explained within a theoretical framework of Open Source Educative Processes and are illustrated by specific multiple data sources. Based on the semester-long observations, the authors argue that Second Life can be used to create independent learning communities that have possibilities for transformative learning, creating contexts in which students move beyond simple understanding and engage multiple perspectives in their meaning-making processes. The authors explain the potential instructional and technological pitfalls involved and how to deal with them through a micro-analytic Open Source methodology, and raise broader philosophical questions about the role of technology in education.