Ohanarama, which is backed with $1.5 million from investors including Softbank Capital and Contour Venture Partners, offers brightly colored quizzes as well as simple single and multiplayer games on its site and through a Facebook app. The idea is to connect families that are separated by physical distance. Parents can create small networks including children age five to 12, their grandparents and others to play together with a common leaderboard.

Of course, like any social gaming service worth its salt, Ohanarama actively encourages users to spam each other so they can play together. But at least this time it’s all in the family.

On April 2, the free online game will be unveiled, marking the culmination of two and a half years of development. It represents a significant undertaking for the network.

Kyra Reppen, SVP and general manager of Nickelodeon’s Virtual Worlds Group, who was showing off the game at GDC last week, declined to quantify the investment, but said it will be heavily promoted, much like a new TV show.

Monkey Quest is comparable to other so-called massively multiplayer games, such as the insanely popular World of Warcraft, which has roughly 12 million subscribers.

Except for that it is cute and cuddly, and something even parents can approve of.

“What we did was take the big adult games and adapt them for kids, which is something you don’t see very often,” Reppen said.

That doesn’t mean they cut any corners.

While it runs in a PC’s browser, it has the quality look and feel of a console game, thanks to a development platform company called Unity, which has been the basis for a lot of other high-quality games.

Monkey Quest takes place in the World of Ook. It spans a vast territory that encompasses five different tribes, which are connected by a network of highways. Initially, there will be 50 levels for players to achieve, but new content will be added daily.

Even after the game launches, the Nickelodeon team will be busy adding missions, characters and other tribes–indefinitely.

In the game, each player creates an avatar monkey that can be customized. Even without a lot of work, the monkeys are very animated and have kid-friendly attributes, like the ability to burp, or take a nap if they aren’t being very active.

Challenges include fighting monsters, or venturing into volcanoes, where they may meet Maurice the Gorilla, a friendly giant that enjoys roasting marshmallows. Players never fight one another, and even when shooting monsters, they use silly guns like the Kernal Blaster, which is an ear of corn. The monkeys are also rewarded with bananas for completing tasks.

The game is targeting 8 to 12 year olds, and keeps things safe by limiting what can be said. Players are never allowed to know each other’s real names, and some phrases are filtered out of text-based conversations automatically. Nickelodeon monitors conversations around the clock, and parents can even choose to limit chats to a handful of canned phrases, like “do you want to trade x for y.”

Still, they find that doesn’t keep kids from interacting with one another.

While the game is in beta, they are noticing that a lot of the players are learning how to interact with one another through gestures. For instance if a monkey squats down and puts his hands above his heads, it implies that it is offering to give another monkey a boost up to a higher ledge. If you give someone a boost, it’s only proper etiquette to reciprocate.

Like many social games today, the game is free, and users never have to pay if they don’t want to.

But there’s two premium offers to entice kids. Subscriptions will cost $9.95 a month, or users can choose to pay as they go, by buying Nick Cash. Parents can enter their credit card online, or they can buy game cards in 40,000 retail locations through a partnership with InComm. Players who pay have access to additional content, including premium missions and items for your avatar.

The idea for Monkey Quest is an evolution from Nickelodeon’s roots in the gaming space, starting with Neopets, which Viacom purchased almost six years ago.

Neopets, which launched 11 years ago, allowed kids to take care of virtual pets, by buying them food, toys and clothes. Similarly, users had to purchase virtual currency to play.

Nordstrom will acquire the company for $180 million in stock. However, the transaction size could jump to as much as $270 million over time if the company meets certain performance goals and vesting requirements for the existing management team.

At that price, the transaction gives a lot of weight to a burgeoning new area of e-commerce, fueled by private/flash sales and other group-buying trends.

Los Angeles-based HauteLook offers discounts of 50 to 75 percent off home, beauty, travel and local services for women, men and kids. In the last two years, HauteLook says it has conducted 2,500 private sales events for 1,000 high-profile brands.

Seattle-based Nordstrom said HauteLook will operate as an independent, wholly owned subsidiary, to be managed by its current leadership. The HauteLook brand and Web site will remain separate from Nordstrom, and there are plenty of incentives to keep the management team in place.

While Nordstrom is primarily a physical department store, it has a fairly sizable online presence and recently has spent time integrating its online and store presence, so customers can see what inventory is online and what’s available in the store.

The transaction is expected to close in the first quarter of 2011 and is subject to customary closing conditions, including regulatory and HauteLook shareholder approval.

That’s why this new one from AVG is especially close to our heart. As part of the company’s Digital Diaries research on children and technology, the security firm polled a couple of thousand mothers with kids from 2 years old to 5 years old in the U.S., Europe, Japan, Australia and New Zealand.

Among the findings was that more of the young kids could play with a smartphone app (19 percent) than could tie their shoes (9 percent). See, Mom, I’m not alone! Of course, Mobilized is no longer a kid and is still bad at shoe-tying.

Tech skills are outpacing life skills in other areas as well. For example, more of the kids can open a Web browser than swim on their own, and more can play computer games than ride a bike.

My favorite part, though, is the quote from AVG CEO J.R. Smith.

“Technology has changed what it means to be a parent raising children today-–these children are growing up in an environment that would be unrecognizable to their parents,” Smith said. “As our research shows, parents need to start educating kids about navigating the online world safely at an earlier age than they might otherwise have thought.”

I would have gone with “Holy crap! We need to get our kids outside more and make sure they can do more than play Angry Birds.” But that’s me.

In any case, there is a cottage industry developing for products that help those who want to stop texting and yammering on their phones, but need some help.

In the latest such move, T-Mobile plans to start offering a program for Android phones called DriveSmart Plus that allows subscribers who opt-in to have their phones automatically tell when the user is driving and put the phone into a driving mode that disables most texting and calling features. Calls can be set to go straight to voicemail, and a text message can be sent to people who are calling or texting to let them know that the recipient is driving.

Of course, all of this requires users to opt-in, so it will only help those who recognize that they have a problem and actually want to do something about it. And there are ways to override it, which is useful if there is an emergency or the cellphone user is a passenger in a moving car.

But, hey, it is a start. T-Mobile will offer DriveSmart Plus initially only for one phone–the LG Optimus T–but said it plans to expand the service soon. DriveSmart Basic, a free version of the app, is available for free on some T-Mobile phones, although that app requires users to tell the app when they are driving. DriveSmart Plus, the new premium program, will cost $4.99 per month and covers all lines on a subscriber’s account.

DriveSmart Plus is from a venture-backed start-up called Location Labs. T-Mobile is also launching another Location Labs-developed service, dubbed FamilyWhere, for tracking children or family members via their cellphones. It’s apparently useful for monitoring an elderly family member or keeping tabs on school-age kids (or perhaps tracking that cheating spouse, if they are foolish enough to opt-in to the service).

Here is a new monthly series from the Fine Brothers called “Kids React to Viral Videos.”

And that about says it all.

Now, leave Britney alone!

Enjoy: