Getting Your Music Right in First Life
From Second Life Wiki
When planning to play live music in Second Life there is certainly some unique aspects to getting your music to your fellow avatars inworld. However, this does not change the need for you to be able to get your music right in real life before streaming it in world. At some point your music needs to be "mixed" down to a stereo input to send to the streaming software. A great test to check before streaming is to record your output and listen to it. You can record it on your computer using free software like Audacity on the PC or GarageBand if you own a Macintosh. If it doesn't sound good recorded on your local computer. It's not going to get any better streamed inworld.
The Audio Chain
It's a good idea to check your audio quality chain completely. At every point you have a volume setting or EQ - you should make a note of the setting. Also keep in mind the distance of your mouth and your instrument from the microphone affect the volume. You don't want to be so loud you distort, or so soft no one can hear you. Check each step of your audio chain BEFORE it gets into the computer.
This seems obvious, but many times you will hear a performer playing out of tune. Take a minute before you go on to tune all of your instruments and get them ready for your show.
The most common disaster of course is a broken guitar string. Have a plan for that situation. Maybe have a spare instrument, or have an .mp3 on standby. Also make sure you have fresh batteries on hand for any battery powered effects and of course make sure your Internet bill is paid!
Getting your live music sounding great before you stream it inworld will protect you from losing fans based on a bad first impression. Believe it or not word-of-mouth is highly effective in Second Life and people will tell others if you are not up to the task. Don't let something as simple as settings kill your musical career.
Learn more at Getting Started As A Second Life Performer