Combined current environment into the learning of a language.
(Generates reports of which words went wrong .... should be useful in
the word alignment game)
(A cool set of iphone apps associated with the site)
http://www.internetpolyglot.com/: More details and interesting log of activity in the project at the author's blog - http://internetpolyglot.blogspot.com/
http://freerice.com : Donate rice by playing games, some of which are language learning flash-card style games.
http://www.digitaldialects.com/: Interesting categorization and flash games.
Lingua Mechanica: Eric Horovitz's group at Microsoft. Sample games: Word Tetris
Duolingo: A project from Luis Von Ahn, CMU.