Kevin was using the name "Kevin Prudhomme," and it was about 30 min. into the show. He introduced the segment:
Kevin Pereira: We hatched a plan though, while we were around, intoxicated, to build the *ugliest* structure we possibly could in Second Life, and I think we succeeded.
Sean Hart: I think it's gaudy, I think it's disgusting.
Kevin Pereira: And that's exactly what we want.
Then he briefly explained what SL is, and he made it sound pretty cool (i.e. he wasn't ripping on it). He showed off a "real" castle in SL, showing what the game was like. It was nighttime, so it was kind of hard to see, as he mentioned. Of course, he could have turned on debug mode and "forced sunset," but that's what they get for not talking to us first, eh?
Then he teleported over to LIME, and wasn't sure what was going on (he thought it would teleport him right inside the castle, which as we all know it doesn't). So he tried to teleport again and again, getting frustrated since it was live. Finally he just flew forward and the castle was right there. It got kind of crazy and things were trying to load, he couldn't see where he was going, etc.
Kevin Pereira: We've crashed the server, apparently, with too many people. Wow. Listen, here's what I was going for. I had it all set up--let's go back to it, can we go back to it?
...
Kevin Pereira: I was going to show you somebody's house and their view when they come out, because as we were building this tower, the people of Second Life were getting ticked off, they were coming over...
Sean Hart: The community board, was like, "no."
Kevin Pereira: Seriously, they were like, "We have standards here! It's too bright, it's too gaudy. What are you doing?"
Is that true? Feels like he just made that up, but maybe there were some neighbors who talked to them. I know the "community board" didn't say anything like that, though. Someone seriously should have done the idea of putting up giant signs saying, "WE LOVE YOUR BUILD!" Oh well.
So then they decided to come back to it later and ended the segment. At the very end of the show ("on the couch"

Kevin Pereira: Can we show the back of the castle, because it's my favorite part. Because not only have we visually polluted the Second Life community, but we are actually physically polluting it. Well there's pink dolphins as well. But we have a drainage pipe that's spewing out sewage into the lakes, which is great.
Then he turned around to look at the castle (in mouse-look), and Kyle Fahid flew down straight into him!
Sean Hart: Whoa, what was that!
Kevin Pereira: We just got possessed!
He spun the camera around and you could see me in the corner, heh, and Kyle Fahid was floating right next to Kevin. Kevin talked about the pants his av was wearing, which had Sarah's face on them, in the crotch. The show was over, so they had the credits in the corner and were showing the hosts. They yelled to show the pants instead of them, and it cut back to SL. They pulled the camera out a little bit and I flew right through it, into the corner of the screen above Kevin and Kyle. Right at the end both Kevin and Kyle got caged by someone, Solon Fitzcarraldo we think, it was hilarious! Immediately they fell straight down (out of the cage) into the water. My ReplayTV stopped recording right then, but it was basically the end.
I'll try to put a clip of it up tomorrow or something, if people want to see it.