While most "life experience" programs are diploma mills, there are a few regionally accredited colleges that give legitimate credit to students who can prove their experience via testing or other methods. excelsior College is one of the most widely known universities to grant such credit. My latest About.com profile reviews the programs offered at Excelsior. Here's a blurb:

"Excelsior College is one of the "big three" online schools known for giving life experience credit. They have a generous credit transfer policy and create an individual degree completion plan for each student enrolled. Students at Excelsior College may get credit for their current knowledge and life experience by taking exams or completing portfolio assessments. Since much of the study required is done without direct supervision, students enrolled in Excelsior should be self motivated and able to work independently."

Check out the full Excelsior College Profile for more details.