For entertainment applications, a successful virtual experience based on a head-mounted display (HMD) needs to overcome some or all of the following problems: entering a virtual world is a jarring experience, people do not naturally turn their heads or talk to each other while wearing an HMD, putting on the equipment is hard, and people do not realize when the experience is over. In the Electric Garden at SIGGRAPH 97, we presented the Mad Hatter's Tea Party, a shared virtual environment experienced by more than 1,500 SIGGRAPH attendees. We addressed these HMD-related problems with a combination of back story, see-through HMDs, virtual characters, continuity of real and virtual objects, and the layout of the physical and virtual environments.