An AI living in a simulated universe can be just as intelligent as one living in the real world. You can't ask it directly to feed African kids but you have many other options, see the discussion at Asking Precise Questions.
The questions you wanted to ask in that thread were poly-time algorithm for SAT, and short proofs for math theorems. For those, why do you need to instantiate an AI in a simulated universe (which allows it to potentially create what we'd consider negative utility within the simulated universe) instead of just running a (relatively simple, sure to lack consciousness) theorem prover?
Is it because you think that being "embodied" helps with ability to do math? Why? And does the reason carry through even if the AI has a prior that assigns probability ...
At the recent London meet-up someone (I'm afraid I can't remember who) suggested that one might be able to solve the Friendly AI problem by building an AI whose concerns are limited to some small geographical area, and which doesn't give two hoots about what happens outside that area. Cipergoth pointed out that this would probably result in the AI converting the rest of the universe into a factory to make its small area more awesome. In the process, he mentioned that you can make a "fun game" out of figuring out ways in which proposed utility functions for Friendly AIs can go horribly wrong. I propose that we play.
Here's the game: reply to this post with proposed utility functions, stated as formally or, at least, as accurately as you can manage; follow-up comments explain why a super-human intelligence built with that particular utility function would do things that turn out to be hideously undesirable.
There are three reasons I suggest playing this game. In descending order of importance, they are: