The perspective of modelling agents rather than using them for a specificed purpose entails a difference in approach. In particular an emphasis on veracity as opposed to efficiency. An approach using evolving populations of mental models is described that goes some way to meet these concerns. It is then argued that social intelligence is not merely intelligence plus interaction but should allow for individual relationships to develop between agents. This means that, at least, agents must be able to distinguish, identify, model and address other agents, either individually or in groups. In other words that purely homogeneous interaction is insufficient. Two example models are described that illustrate these concerns, the second in detail where agents act and communicate socially, where this is determined by the evolution of their mental models. Finally some problems that arise in the interpretation of such simulations is discussed