This spelling of "lol" often used in the MMORPG game "runescape" (www.runescape.com) It is also most often used by the people who use words like "hax, n00b, r0fl" and replace letters with symbols such as (tr4de me, l337 h4xx0rz p\/\/n U) uh..ya...
Other spellings: lo0l lOol loOl (the capital O is often replaced with a 0(zero)
lvl 40 character> Ew i just got n00bed by this lvl 23 pker in the wilderness
lvl 60 character> l0ol
lvl 60 character> sux to be you
lvl 40 character> ya..i lost all my rune armour..
lvl 60 character> loooool