Virtual Reality (VR) is a new medium which allows total stimulation of one's senses through human/computer interfaces. VR has applications in training simulators, nano-science, medicine, entertainment, electronic technology, and manufacturing. This paper focuses on some current and potential problems of virtual reality and virtual environments that should be studied and resolved before widespread adoption and implementation of this new technology. Issues considered in this paper include: (1) physio-psychological aspects: virtual reality is a spatial and temporal medium in which users can accomplish normally unrealistic or supernatural tasks along with normal tasks, so creators must consider how these events or tasks will be processed mentally and how they will affect the users' emotions; (2) technology transfer: visual perception and information processing in the brain have yet to be fully understood, and virtual reality adds another dimension that must be investigated; (3) technology versus performance: the virtual environment has to be set precisely for each user so it does not cause adverse physical and psychological effects; and (4) entertainment users will make up the largest share of the VR market by the year 2000, so designers should keep in mind that the heavy VR users are likely to have less skill and knowledge in making sophisticated reality judgments, and may "get lost" in the VR environment. (Contains 14 references.) (SWC)