Clarence's Realm is the place where it's namesake white rabbit lives. To match Clarence's appearance as a cliché cartoon rabbit, he created a world that looks like an incarnation of Alice in Wonderland. From here, he operates his mission to convince Jet he's being tricked
Clarence actually made an army of cartoon figures, shown when Jet.exe invaded this world to retrieve his last package. This lunatic force consists of, among others, eyepatch wearing sunflowers armed with assault rifles and monkeys dressed in clown attires (including hippo mounts).
Clarence's home. This is the place where the rabbits true identity is revealed, along with a lot of inside jokes:
Clarence is watching what appears to be a Tron: the Ghost in the Machine tv-show.
On the table, a pack of cereals can be seen, labeled Deadly Discs.
On the floor, we find a X-Box and a controller, with a copy of Tron 2.0 on top to cover the logo.