This Los Angeles Times article looks briefly at the projects of the USC’s Institute for Creative Technologies. Here's an overview video. From the article: "Computer-simulated battlefields, three-dimensional video teleconferencing and sprawling virtual worlds are just a few of the tools being developed at USC’s Institute for Creative Technologies.
The cutting-edge research institute, known as ICT, recently opened a facility in Playa Vista where it develops virtual environments used to train U.S. military personnel.