This paper describes the design, evaluation, and lessons learned from a pro
ject involving the implementation of an immersive virtual environment for c
hildren called NICE (Narrative-based, Immersive, Constructionist/Collaborat
ive Environments). The goal of the NICE project was to construct a testbed
for the exploration of virtual reality as a learning medium within the cont
ext of the primary educational reform themes of the past three decades. Wit
h a focus on informal education and domains with social content, NICE embra
ces the constructivist approach to learning, collaboration, and narrative d
evelopment, and is designed to utilize the strengths of virtual reality: a
combination of immersion, telepresence, immediate visual feedback, and inte
ractivity. Based on our experiences with a broad range of users, the paper
discusses both the successes and limitations of NICE and concludes with rec
ommendations for research directions in the application of immersive VR tec
hnologies to children's learning.