Abstract: This paper discusses ways to incorporate video displays into virtual environments. It focuses on the virtual worlds created by a distributed multi-user simulator. Still images or video streams represent spaces within these three-dimensional worlds. The paper introduces techniques to deal with avatar movement into and out of video regions. In one technique - media melding - when an object moves from one region to another, the media used to represent that object correspondingly change. In a second technique - object tracing - when an object moves from one region to another, its actions in the second region are represented by a trace object in the first region. Pyramidic panels provide a means of dealing with viewpoint changes so that two-dimensional images and video clips can successfully simulate three-dimensional spaces. The paper concludes by suggesting ways to extend our techniques and by listing possible future studies.