It Virtual particles are virtual.
Yes - virtual particles are virtual
They aren't real particles that appear out of the vacuum and annihilate one another a short time later.
Yes, virtual particles aren't real particles that appear out of the vacuum and annihilate one another a short time later

.
ETA: They do have properties like real particles such as charge.
...snipped Wikipedia irrelevance...
Now watch my lips,
Farsight 
:
* I search
Photon-photon scattering in collisions of laser pulses (PDF) and find no mention of "gamma" let alone "gamma-gamma pair production"
* What you quote is about virtual particles but
pair production is usually real particles, e.g. real electron positron production in the presence of a nucleus. The paper uses "pair-creation".
* What you quote is not about a photon "morphing into an electron-positron pair". It is about virtual particle pairs appearing out of the vacuum and then annihilating each other a short time later. This is standard quantum field theory.
* The paper is about photon-photon scattering and uses QED to model it:
Photon-photon scattering in collisions of laser pulses (PDF).
ETA: My guess is that you are going on a semantic nitpicking derail. This is the scattering of real photons from real photons caused by the polarization of virtual electron/positron pairs. The real effects would be measured on the real photons. Thus "photon-photon scattering" rather than "photon-photon scattering caused by the polarization of virtual electron/positron pairs"!
The whole point is that photons interact with photons, and
* classical mechanics (Maxwell's equations) says it does not happen.
* QED says it is possible by interacting with virtual particles.
The paper gave you a photon-electron interaction. So does wiki. See this bit:
"From quantum electrodynamics it can be found that photons cannot couple directly to each other, since they carry no charge". Somebody has inserted the next sentence since I've raised this issue. The front portion of a photon is a little like a partial positron, the back is a little like a partial electron. But the main point is that photons interact with photons, and QED doesn't cover it.
Virtual electron-positron pairs are always popping in and out of existence in a vacuum. That is basic quantum mechanics,
Farsight.
Citing an irrelevant but interesting article (
Cargo Cult Science) by Richard Feynman does not change this basic physics

!
Citing one of the funders of
Quantum Field Theory is especially ignorant since QFT is full of virtual particles!
Most theories in standard particle physics are formulated as relativistic quantum field theories, such as QED, QCD, and the Standard Model. QED, the quantum field-theoretic description of the electromagnetic field, approximately reproduces Maxwell's theory of electrodynamics in the low-energy limit, with small non-linear corrections to the Maxwell equations required due to virtual electron–positron pairs.