This paper describes the concept, prototypical implementation, and usability evaluation of the Augmented Virtuality (AV)-based videoconferencing (VC) system cAR/PE!. We present a solution that allows three participants at different locations to communicate over a network in an environment simulating a traditional face-to-face meeting. Integrated into the AV environment are live video streams of the participants spatially arranged around a virtual table, a large virtual presentation screen for 2D display and application sharing, and 3D geometry (models) within the room and on top of the table. We describe the general concept and application scenario as well as the actual hardware setup, the implementation, and the use of the system in its current state. Results of two usability studies with 87 subjects are presented that show the general usability of our approach as well as good overall satisfaction. Parts of the work described here were presented as a poster at the second International Symposium on Mixed and Augmented Reality (Regenbrecht, Ott, Wagner, Lum, Kohler, et al., 2003. An Augmented Virtuality Approach to 3D Videoconferencing. Poster at 2nd Int. Symp. on Mixed and Aug. Reality, Tokyo.).