NP, though I only thought about it for a few minutes, it's your homework you know

1) In reality you'ld have to find a way to keep people segemented by skill, so the Tysons of the world don't crush the Urkel's. Yeah, a monthly fee seems reasonable. Not a Gold's Gym, more of a boxing gym with street fighting.

2) My thought (which doesn't need to be used) is that your "character" would exactly mimic your moves, but, since it's virtual, you'd feel no pain. Or, you could have the same thing and you feel the pain, but the pain is (somehow) temporary.

Good luck