I remember this old "game" from I believe the early 2000s, it was an online chat room game where people were represented by floating mask-like faces, and people would chat using speech bubbles. The game (if you could call it that) was 2d and pixelated. You interacted with the game by travelling between different rooms which were just basic backgrounds. This might not be correct, but I remember that you couldn't see your avatar only other people could. The avatars also didn't move and would just "stand" there, I think the mouth moved when talking.
And before you comment it NO it is NOT Worlds.com, Worlize, Whyville, or The Palace.