This was posted to the "Virtual Theater Workshop" Group in an attempt to establish an initial vision that doesn't see virtual reality as a representation of reality but as the reality we try to represent.
If we take "virtual" to mean "potential" and "virtual reality" to be the "universe of essences" from which we create fleeting manifestations then we already have a virtual theater, it is always potentially here, and we can only create a subjective reflection of it that we call "vitual theater". There is always a potential/virtual performance going on that we don't have the ability to perceive. All we can do is create our manifestation of it and Plato would say we are only fooling ourselves (and would be banned from his Republic).
But Plato's dead and Shakespeare's Globe Theater has been rebuilt in England even though we can only guess what the inside looked like (or what Ancient Greek music sounded like).
I'm working on an idea I call "rhythmic alembic" which is an apparatus for distillation made out of rhythm that is created from the larger rhythmic flow when there is some sort of disturbance or interaction -- think of the patterns made in a slow flowing river when you drop a stone in it. As Heraclitis pointed out you cannot step in the same river twice. What we are calling "virtual theater" or "virtual performance" may be related to this.