Abstract: Provided is a method of developing user-generated challenges in a virtual environment. The method includes receiving registration information transmitted over a communication network, validating the registration information, establishing a user account on a computer and associating a first virtual character with the user account. A user is granted access to a course creation tool comprising a plurality of different course portions that are to be arranged in the virtual environment to construct a course to be navigated from a start point to an end point. Included along the course, to be encountered by another virtual character between the starting point and the end point, is a challenge region that is to interfere with a progression of the another virtual character along the course in a direction generally toward the end point. Two or more virtual obstacles represented by icons are selectable for inclusion in the challenge region.