Machinima (muh-sheen-eh-mah) is filmmaking within a real-time, 3D virtual environment, often using 3D video-game technologies.In an expanded definition, it is the convergence of filmmaking, animation and game development. Machinima is real-world filmmaking techniques applied within an interactive virtual space where characters and events can be either controlled by humans, scripts or artificial intelligence.
By combining the techniques of filmmaking, animation production and the technology of real-time 3D game engines, Machinima makes for a very cost- and time-efficient way to produce films, with a large amount of creative control (http://www.machinima.org/machinima-faq.html). 
A Dream within a Dream by Tom Jantol
Other fine examples at http://www.machinima.com/
Judith Baenen. Notes from MYSA09 on involving families in schools: 
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