his chapter addresses the negative effects of time-delayed visual feed-T back on perceptual-motor performance in virtual environments and describes the results of an empirical evaluation designed to compare two methods of compensating for these effects. The first method, termed the algorithmic prediction method, derives from an engineering perspective in which attempts are made to extrapolate user input data (i.e., physical movement of the eyes, head, arms, legs; etc.) into the future by the amount of time delay in the system, thereby canceling the disruptive effects of the delayed feedback. The second method of compensation, termed the perceptual adaptation method, is a behavioral solution based on the recognition that human beings possess a remarkable capacity to adapt to perceptual modifications of their environments. This latter notion, that human beings exhibit adaptive perceptual systems or perceptual plasticity, was first introduced to the primary author through the works of William Dember (Dember, 1960;Dember & Warm, 1979). In particular, a chapter titled "Effects of Learning on Perception," which appeared in the first edition of his book "Psychology of Perception" ( 1960), was especially influential in the way I came to understand and think 579