The 
Virtual Limbo is how the Lyoko program portrays the transfer tubes that connect the Scanners to the supercomputer. If something goes wrong with the virtualization program, members of Team Lyoko will end up here, stuck between the Factory and Lyoko. Jeremie got stuck here in 
Frontier, and was saved by Aelita, who collected enough data from four Towers  to transport her lover back to Earth. He even got an opportunity to  touch her inside the Limbo, and used this experience as the basis for  his response to a question asked by Ulrich concerning what it was like inside the Limbo, which was an enthusiastic "It was... fantastic!".    
The Virtual Limbo is sometimes regarded as a "hidden sector" of Lyoko, although it really isn't.    
Another highly plausible theory is that the Limbo is actually an  area of memory space allocated to the scanners which Yumi routed Jeremie  into by accident, evidenced that once Jeremie 'spammed' this space up  with himself, the scanners could no longer operate due to the lack of  memory space to run their programs.