State and Local Governments love mapping stuff. They also create really cool looking websites that their citizens find really useful. Here's a list of some State and Local Governments that are using Virtual Earth and what they are doing with it. To quote my spiritual advisor: actor, singer, dancer, spiritual lama, Will Smith, these SLG's are "Getting Jiggy Wit It".
The Texas Department of Transportation built a really cool site packed full of information. This thing shows EVERYTHING including traffic cameras and even the highway message signs that gives drivers up to date information about road conditions, closures, lane restrictions, etc. They even have the road conditions frequency you tune in on your radio that you can hover over the radio tower and get the information going out over the airwaves.
The Ohio Department of Transportation built a really great looking site. They load the map empty and put a menu on the side where you can optionally select things you want to see and get more information about. I have to say their designers did a really great job with this site. It has a nice clean look to it.
In the Puget Sound region of Washington State, the eCityGov Alliance built an application where users can search, locate, and visualize regional parks and recreational resources. Here's a look at downtown Kirkland, WA. They did a great job. At the upper right corner you can view it near full screen and they took the legend div and floated it as a transparent div in the window. Cool stuff. The funny thing is that the push pins they used look really familiar. I wonder where I've seen those before. Hmm....
The City of Miami has done an incredible implementation of Virtual Earth. They are using it for their zoning and permitting with extensive use of polygons. They even use Virtual Earth 3D to show zoning and property information. That's cool and I'll bet property developers love this feature.
Well there are tons more but that should give you a good idea of how State and Local Governments are doing great work to bring rich and interactive services to their citizens. If you know of others doing similar work for their citizens post it up here. I'd love to see them.