Showing off a "Photosynth," which can put different photos together and create this pseudo-3D space, an MS spokesthing says on my TV, "it's not actually virtual reality, it IS reality that you're experiencing. It's not a video game, it's not an artificial playground in some sense, it's REALLY the things that you had visited in the real world, but reconstructed within the confines of the computer."
Um. Actually, just so we're clear, in fact:
It is NOT REALLY the things that I had visited, it IS virtual reality, it IS a video game, it IS an artificial playground in a very true sense.
I hope that clears things up.