Solid evidence of virtual reality's benefits has graduated from impressive visual demonstrations to producing results in practical applications. Further, a realistic experience is no longer immersion's sole asset. Empirical studies show that various components of immersion provide other benefits - full immersion is not always necessary. The goal of immersive virtual environments (VEs) was to let the user experience a computer-generated world as if it were real - producing a sense of presence, or "being there," in the user's mind.

Three-dimensional user interface design is a critical component of any virtual environment (VE) application. In this paper, we present a broad overview of 3-D interaction and user interfaces. We discuss the effect of common VE hardware devices on user interaction, as well as interaction techniques for generic 3-D tasks and the use of traditional 2-D interaction styles in 3-D environments. We divide most user-interaction tasks into three categories: navigation, selection/manipulation, and system control. Throughout the paper, our focus is on presenting not only the available techniques but also practical guidelines for 3-D interaction design and widely held myths. Finally, we briefly discuss two approaches to 3-D interaction design and some example applications with complex 3-D interaction requirements. We also present an annotated online bibliography as a reference companion to this article.

3D UIs are uniquely able to achieve superior interaction fidelity, and this naturalism can be a huge advantage.

Issues such as hand and tracker jitter negatively affect user performance with the ray-casting selection technique in 3D environments. This makes it difficult for users to perform tasks that require them to select objects that have a small visible area, since small targets require high levels of precision. We introduce an approach to address this issue that uses progressive refinement of the set of selectable objects to reduce the required precision of the task. We present a design space of progressive refinement techniques and an exemplar technique called Sphere-casting refined by QUAD-menu (SQUAD). We explore the tradeoffs between progressive refinement and immediate selection techniques in an evaluation comparing SQUAD to ray-casting. Both an analytical evaluation based on a distal pointing model and an empirical evaluation demonstrate that progressive refinement selection can be better than immediate selection. SQUAD was much more accurate than ray-casting, and SQUAD was faster than ray-casting with small targets and less cluttered environments.