Here is the interview with Philip Linden where my vague memories come from... the notecard says 2003-08-14 04:17:04.
I don't know if this is up on the history wiki or not. Since it predates Oz's birth, it's probably not up yet. I'll add it later.
Darwin Appleby shouts: Ok, our next guest tonight is the creator of SL itself
James Miller: oo, I wonder who that is?
Darwin Appleby shouts: Everyone please give a warm welcome to Phillip Linden!
Cori Sunshine: wooohooo
Darwin Appleby shouts: Hi Phil, great to have you on the show
Philip Linden: Thanks... so nice to invite me...
Darwin Appleby shouts: So you are the creator of SL
Philip Linden: what with all the lag!
Lordfly Digeridoo shouts: don't forget to shout!

Philip Linden shouts: Right
Philip Linden shouts: Thanks for inviting me!
Philip Linden shouts: Does any one have any extra lag for me

Ezhar Fairlight: i can spare some i think
Cori Sunshine: no lag here
Philip Linden shouts: Indeed
Washu Zebrastripe: lol
You shout: Try playing this from across the atlantic!
Joseph Ramos: i have loads of it here, this message was written when you were asking for lag
Joseph Ramos: hey i do
Philip Linden shouts: Well I'm in Boston
Darwin Appleby shouts: Well I'm curious as to where you got inspiration for SL
Philip Linden shouts: Ahh...
Philip Linden shouts: Inspiration.
Darwin Appleby shouts: Where did someting like this hit you?
Philip Linden shouts: I'd like to say in the shower
Philip Linden shouts: Or maybe reading Snowcrash
Philip Linden shouts: But the truth is...
Darwin Appleby shouts: Heh, showering would be an interesting place for this to hit you...
Philip Linden shouts: I've been into doing this sort of thing for a very long time
Philip Linden shouts: When I saw the internet,
Joseph Ramos: Regarding to technical stuff, was it hard to write this game .question.
Philip Linden shouts: I really wanted it to be this sort of thing
You have offered to exchange calling cards with Joseph Ramos.
Philip Linden shouts: Something that connected us in new ways...
Darwin Appleby shouts: Joseph, no audience quesions plz

Philip Linden shouts: Not just a big library
James Miller: scuze him, he's new

Joseph Ramos: sorry didnt knew in new
Philip Linden shouts: I didn't try and really do it, though,
Darwin Appleby: Np
Philip Linden shouts: Until I felt that latency would be low enough
Philip Linden shouts: Clearly we are still bleeding edge,
Philip Linden shouts: But we've come a long way.
Darwin Appleby shouts: That's definetly a good way to look at it though, from a revolutionaries perspective

Darwin Appleby shouts: I understand you were the head of technologies at Real Networks
Philip Linden: Yep... but I wasn't responsible for the RealOne player

Darwin Appleby shouts: Haha good

Ezhar Fairlight: good!

Philip Linden shouts: : Yep... but I wasn't responsible for the RealOne player

James Miller shouts: Thank god
Alek Wu: lol
Philip Linden shouts: I was the CTO
Philip Linden shouts: And I developed RealVideo
Huns Valen shouts: yay for that
Darwin Appleby shouts: Wow, you were pretty high up there
Philip Linden shouts: I worked before that on video compression.
Philip Linden shouts: Which in 1995 was really fun.
Darwin Appleby shouts: This games infastructure is based on the way RealVideo compressed video, is that correct?
Philip Linden shouts: Well sort of...
Philip Linden shouts: Things like the land and the images are compressed
Philip Linden shouts: using stuff that was worked on at that time by folks like Real
Philip Linden shouts: We've had to invent some other stuff as well along the way
Taylor Thompson shouts: sharkrkk
Philip Linden shouts: Like very heavily compressed geometry
Philip Linden shouts: For objects
Philip Linden shouts: But there are some similar technologies, yes.
Darwin Appleby shouts: Now has the technology from SL affected any other games that you know of?
Philip Linden shouts: Hmmm.... what a great Question.
Philip Linden shouts: Well I'd say that its nice to be right!
Philip Linden shouts: We pioneered the idea that the right sort of environment
Philip Linden shouts: in which everything was built by you guys
Philip Linden shouts: Could actually be fun
Philip Linden shouts: Let me tell you
Philip Linden shouts: Convincing people of that 2 yrs ago was hard work
Philip Linden shouts: But today I get calls from everyone in the business...
Philip Linden shouts: Now everyone suddenly gets it.
Philip Linden shouts: I guess thats the fun of being a revolutionary.
Philip Linden shouts: There are lots of little things I have seen a other games
Philip Linden shouts: That we have done.
Philip Linden shouts: Our AV customization
Philip Linden shouts: I getting widely copied.
Darwin Appleby shouts: Yes, at first that would just seem like a 3d Modeler online, but with an interface like this it's hard to imagine what ISNT fun about SL
Philip Linden shouts: For example.
James Miller: The Sims 2 is a knockoff of SL's avatar customization!

Philip Linden shouts: Yes thanks!
Alek Wu shouts: we lub Philip!
James Miller: Well, I like him...
Darwin Appleby shouts: So how did you first imagine this?
Philip Linden shouts: Ohh... well picture this.
Darwin Appleby shouts: When you had the idea, what did it look like to you, and how was it diffrent form what we have
Philip Linden shouts: I used to dream
Philip Linden shouts: Of like a big empty space
Philip Linden shouts: Where I would stand
Philip Linden shouts: And take big pieces of walls
Philip Linden shouts: Out of a toolkit...
Philip Linden shouts: And drag them around myself.
Philip Linden shouts: That idea,
Philip Linden shouts: Of being a creator in a new world.
Philip Linden shouts: Was what I thought a lot about.
Philip Linden shouts: How to do it...
Darwin Appleby shouts: That's incredible
Philip Linden shouts: With the parts I had... PCs, the net.
Darwin Appleby shouts: So you emphisize heavily the part about being a creator in a new wold
Philip Linden shouts: Yes.
Darwin Appleby shouts: Is this the main draw to SL for you?
Philip Linden shouts: It seemed to me that what would be interesting...
Philip Linden shouts: Was the idea
Philip Linden shouts: That you wouldn't just 'be there'
Philip Linden shouts: But would actually be a part of creating the world around you.
Philip Linden shouts: I think that the only defensively 'real' world
Philip Linden shouts: Is one which reflects our own passions, designs.
Philip Linden shouts: I don't think that just means building stuff...
Philip Linden shouts: But also building society, governance, meaning.
Philip Linden shouts: So beyond the 3dmodeling.
Philip Linden shouts: Into deeper forms of creation.
Philip Linden shouts: And I also think/hope...
Philip Linden shouts: That somehow SL can make us a bit better than we are...
Philip Linden shouts: Teach us things about ourselves.
Philip Linden shouts: That we wouldn't otherwise learn.
Darwin Appleby shouts: That's great
Darwin Appleby shouts: So it must have been a little dishearting when a group like the WW2OLers came into SL
Philip Linden shouts: No I don't really think so.
Darwin Appleby shouts: Or a person like... oh... I don't know... EZ Money popped up

James Miller: lol
Philip Linden shouts: Conflict is a part of narrative... a part of all lives.
Philip Linden shouts: When I see a place... like Tunetown for example.
Darwin Appleby shouts: So you expected something like this to happen really?
Philip Linden shouts: Where there is no conflict.
Philip Linden shouts: In a sense there is also no life.
Darwin Appleby shouts: Ah yes, the mighty flop
Philip Linden shouts: (although I think Toontown is very cool)
Ezhar Fairlight: there was verbal conflict in toontown

Darwin Appleby shouts: And do you believe (among other things) that this is why Toontown was not successful?
Philip Linden shouts: Well...
Philip Linden shouts: I don't think that makes it unsuccessful necessarily
Philip Linden shouts: Only a lot less real.
Darwin Appleby shouts: Ah I see
Philip Linden shouts: I am interested in what Jaron Lanier calls 'the reality conversation'
Philip Linden shouts: And that is what we are starting here.
Darwin Appleby shouts: So when you first started coding SL, and getting your ideas on paper, then what did you imagine SL to be?
Philip Linden shouts: Hmm....
Philip Linden shouts: Well the first thing I/we worked on
Philip Linden shouts: Was the server model...
Philip Linden shouts: The idea that the 'world' was on all these servers...
Philip Linden shouts: And that you were a sort of 'agent' within it.
Philip Linden shouts: When you connected.
Philip Linden shouts: That was the first work we did...
Philip Linden shouts: Oh and a really cool first experiment was water...
Darwin Appleby shouts: I bet
Philip Linden shouts: let me tell you about that...
Darwin Appleby shouts: Please do
Philip Linden shouts: A bit like genesis really.
Philip Linden shouts: The first thing we did was make the servers simulate real water.
Darwin Appleby shouts: So you had a "Waterworld"

Philip Linden shouts: With waves and reflection and you could throw things in it.
Philip Linden shouts: And watch the waves go across the sims.
Philip Linden shouts: Yes it was Waterworld.
Philip Linden shouts: We figured it we could xmit all that moving water.
Philip Linden shouts: We could do anything
Philip Linden shouts: And so that was the start of it.
Darwin Appleby shouts: So was the water then more complex then it is now?
Philip Linden shouts: Much!
Darwin Appleby shouts: You had to compress it basicly
Philip Linden shouts: It was a simulation, like our wind and clouds today.
Darwin Appleby shouts: I see
Philip Linden shouts: We had to compress and send it constantly.
Philip Linden shouts: But we took it out, because although it was pretty.
Philip Linden shouts: It was like 80Kbps... just for the water.
Philip Linden shouts: So not that pretty!
Darwin Appleby shouts: Yeah not technicly

Darwin Appleby shouts: So tell me about your first terrain
Darwin Appleby shouts: What was that like?
Philip Linden shouts: Hmmm...
Philip Linden shouts: Well let me remember
Philip Linden shouts: We had these cool trees...
Philip Linden shouts: just simple billboards, but they burned!
Philip Linden shouts: You could shoot them and start them on fire.
James Miller: lol
Philip Linden shouts: And the fire would spread to other trees.
Philip Linden shouts: It was amusing.
Darwin Appleby shouts: This was also more complex thea now then
Darwin Appleby shouts: than*
Philip Linden shouts: Well now they are a LOT more visually complex.
Philip Linden shouts: And of course blow in the wind.
Darwin Appleby shouts: Right
Philip Linden shouts: So there was a time...
Philip Linden shouts: Many board meetings ago.
Philip Linden shouts: When we didn't know exactly what we wanted SL to be like...
Philip Linden shouts: And on a lark...
Philip Linden shouts: I asked the guys in the office to just build crazy stuff
Philip Linden shouts: while we met in the meeting.
Darwin Appleby shouts: So THAT'S where Zoe came from

Philip Linden shouts: We were watching them on a big monitor...
Philip Linden shouts: Building little snowmen and houses and stuff.
Darwin Appleby shouts: Haha
Darwin Appleby shouts: Come a long way since that
Philip Linden shouts: And after a bit of watching them all working together in real time.
Starr Fairlight shouts: Mr. Linden, may I please ask a question?
Philip Linden shouts: We realized WOW that was what was cool about SL
Philip Linden shouts: That idea of creating together.
Darwin Appleby shouts: So zooming to today
Darwin Appleby shouts: WHat do you think about the current outrages with taxes?
Philip Linden shouts: Well I loved the tea party.
Philip Linden shouts: I'm in boston so I showed those boxes to folks here.
Philip Linden shouts: Great s
Darwin Appleby shouts: Hehe
Philip Linden shouts: It was great
Philip Linden shouts: But seriously
Darwin Appleby shouts: I bet

Philip Linden shouts: Taxes and how to change them are highest priority.
Philip Linden shouts: We need to change the rates, etc, as more folks come in.
Philip Linden shouts: But remember that we have to keep enough capacity to go around.
Philip Linden shouts: But having said that.
Philip Linden shouts: The rates are very high to incent lots of 'evolution' in the content
Philip Linden shouts: And as the world gets bigger we won't need as much pressure there.
Philip Linden shouts: Kind of a trade off between buying and renting, in a way.
Philip Linden shouts: Right now its like rent-world!
Darwin Appleby shouts: A great foundation for something like this

Darwin Appleby: Just not one that grows with the population
Darwin Appleby shouts: Now backtracking for a second, the first sim to go online was Zoe, correct?
Philip Linden shouts: Man thats a good question.
Philip Linden shouts: I don't really remember.
Huns Valen shouts: sim01 = Da Boom
Philip Linden shouts: The area in the central lake... minna, zoe, natoma.
Philip Linden shouts: Those were the first areas, yes.
James Miller: da boom makes most sense, its the sidestreet closest to LL's offices
Darwin Appleby shouts: Well how about the building system, how was that at the time?
James Miller: actually, its De Boom on the map
Philip Linden shouts: Well actually its not changed much.
Philip Linden shouts: Thats probably the system that seems most right.
Philip Linden shouts: We've still got lots of work though!
Darwin Appleby shouts: Now someone in the audiance had a question
Darwin Appleby shouts: What was your question please
James Miller shouts: Question
You have offered to exchange calling cards with Philip Linden.
Darwin Appleby shouts: Ok never mind then :0
James Miller shouts: ...I have one
Darwin Appleby: Well if I could have one last question Phil, how big did you expect the world to be?
Darwin Appleby shouts: Well if I could have one last question Phil, how big did you expect the world to be?
Darwin Appleby shouts: Did you ever imagine it as big as this?
Darwin Appleby shouts: Or bigger maybe?
Philip Linden shouts: Well...
Philip Linden shouts: Like Han Solo said.
Philip Linden shouts: I can imagine an awful lot.
Philip Linden shouts: I think SL gets more and more interesting as it grows.
Philip Linden shouts: Now we are a village.
Philip Linden shouts: Imagine us as a small city.
James Miller shouts: Phil, come visit new york before you go home from boston

Philip Linden shouts: As we put servers in other parts of the world...
Philip Linden shouts: That will be incredibly cool.
Philip Linden shouts: Imagine waking into SL China, or something.
Darwin Appleby:

that Small shouts: where first ?
Philip Linden shouts: Walking I mean.
Joseph Ramos: That would be great, im currently in south america, my ping is not that bad, but sometimes its really unplayable hehe
Philip Linden shouts: Yep will help with that.
Darwin Appleby shouts: Well that was a great interview Phil, thank you very much for being here
Philip Linden shouts: Thank you very muhc for having me!!!
Philip Linden shouts: Its late in boston...
Cori Sunshine: great game Phil
Philip Linden shouts: And I have an early meeting.
James Miller: Late? Its only 11pm!
Darwin Appleby shouts: I bet, good luck over there

Philip Linden shouts: So gotta run.
Joseph Ramos: /lap
Darwin Appleby shouts: See you
Philip Linden shouts: Thank you all for making SL what it is.
James Miller shouts: goodnight Phil!
Darwin Appleby shouts: Ok guys, thank you all very much for being here tonight, next show will be on monday, good night everyone!
James Miller: oo, bye bye set
Cori Sunshine: i want the popcorn *stomps feet