Well, after reading your post I must say I am very impressed with your dedication, and it sounds like you have thought things through quite well.

As far as using letters already in use by another fraternity, that can be a touchy subject in "the greek world". It has been known to happen among local groups (after all, there are only so many letters in the alphabet!), but if this is a national group, they probably will not permit you to share in their letters. However, if this is a local group, and you are very set on these letters, your best bet is to contact the group, explain your reasoning, and ask if they object to you using the letters as well.

To be honest with you, I don't know whether a fraternity based out of an internet-college will be widely accepted. Personally, I don't see why there should be a problem...like I said, it sounds as though you have given this some serious thought and have all of the enthusiasm and dedication the founders of all of our groups had.

I think the most common question you need to prepare yourselves for, is why do you want to be a fraternity? The founders of all of our organizations have had a distinct purpose in forming our groups... whether (for some of the older sororities in particular) it be to give women an opportunity to band together in a time when women in college were a rare thing... or other groups, like mine, to provide a connection for people with an interest in the same thing (in the case of DO, music). Now bear in mind, I am not questioning your motivation, I'm just telling you the possible questions I can imagine people asking.

I wish you the best of luck in this. Please, let us all know how everything works out for you!