Everyone goes to a lovely dream world where they get to do whatever they please! We visit that world several times a night, but we don't get to stay there. People in comas sort of visit it, but not fully. When you die, you get to live and control it, and you can go visit your friends by thinking about a door in a hallway. The hallway is in fact just a cloud in an endless sky of clouds, and you instantly know how to get to your friend. And you can't fall.
Of course, there's a world that everyone hangs out in, and they only go in their own world if they want to have private fantasies. The main area everyone hangs around in is a bit like Second Life, in that people work together to do what they want.
You can also instantly find any dead person you like. You can go visit living people, but unless you try really hard, you can't have any effect on them. The easiest things you can do is transmit emotions e.g. approval of a new spouse, or love.
If you're a fundementally bad person, you get locked into your room, although if enough good people decide to unlock it, they're allowed out.
Oh, and Vlad, thanks for the first comment. :3