If you can believe the hype.
"The VIM is a model of human brain function, which is used to drive a 3D character who lives in a virtual world. The Virtual Intelligence that you see exploring the world is so named to distinguish it from "artificial" intelligence algorithms. Rather than trying to imitate brain function, the VIM is designed to actually replicate it. At the heart of the VIM is the Quantum Flux Engine, which works in an analog rather than a digital manner to create the richness of behavior exhibited by the VIM. With sensory input from the VI's visual field, and a limbic system which develops likes and dislikes for what is seen, the VI will acquire different behavior patterns with time. We hope you enjoy watching this life form evolve, and maybe decide yourself whether it is an "artificial" person or simply a "virtual" person."
www.qflux.net
I do like the concept even if the execution leaves a lot to be desired. If their code can help blur the line between fantasy and reality I'm all for it.