I've just given a 15 minute version of my rule of law argument at the State of Play VI conference in New York. The basic point was that we are still stuck in a false dichotomy between regulation and liberty for virtual communities. I argue that we need to take a closer look at the way in which governance takes place and the tensions that exist in virtual communities. I propose an evaluatory framework based upon the various ideals of the rule of law. It is the legitimacy that is most threatened by private governance, and it should be legitimacy that we seek to encourage and safeguard in the legal regimes that constrain governance.