Abstract: A simulator system includes functionality for dynamically tracking position and orientation of one or more simulation participants and objects as they move throughout a capture volume using an array of motion capture video cameras so that two- or three-dimensional (“2D” and “3D”) views of a virtual environment, which are unique to each participant's point of view, may be generated by the system and rendered on a display. In 3D and/or multi-participant usage scenarios, the unique views are decoded from a commonly utilized display by equipping the participants with glasses that are configured with shutter lenses, polarizing filters, or a combination of both. The object tracking supports the provision and use of an optical signaling capability that may be added to an object so that manipulation of the object by the participant can be communicated to the simulator system over the optical communications path that is enabled by use of the video cameras.