This is my own opinion, and I do not mean to offend anybody in any way. Please PM me if I offend you so I can apologize.

Dear blessed,
I feel that the Virtual Villagers games are only games! They are set in a ficticious island. LDW has tried not to offend anybody with their approach to religon, and they have done an admirable job.
Also, how is the statue offensive? From the time of the Byzantine Empire, Eastern Christians have been praying to portraits of saints, called icons, which can be compared to the idol. Also, these fictitious villagers have their own culture and beliefs, which are completley fictional.
This is similar to those who challenge the Harry Potter books because of alleged themes of witchcraft. This view is completely off, as the Harry Potter series promotes themes of love and frienship. The Virtual Villagers series are fun, harmless games that can be enjoyed by everybody.
Finally, I feel that if you cannot accept the supposed "paganisim" in these games, how can you accept beliefs and opinions other than your own in the real world? If a computer game does not completely uphold your religous values, I feel very strongly that you need to look at your view at the world, and be more accepting of the differences that define the human race.

Note: I am a Catholic, and feel no religous or ethical issues with playing the Virtual Villagers games.

~Kikiann11