This is very interesting : The senses don't have to be exactly reproduced, they just have to work at the same time to trick the brain into existing within a virtual world.
LOL that might be happening to us right now.
Ok , I think that if they integrated that knowledge with dreams, lucid dreaming, and mapping the brain and neurological processes that take place during lucid dreaming. They could send VR experience information to the sleeping brain and attempt to trigger a lucid dream while in the REM stage that way Lucid Dreamers Imagination will compensate for the bad VR effects in graphics, audio, taste, smell, touch, movement, etc.
They can even make it online this is a post i made on my ideas on that
http://www.theuniversesolved.com/theuniversesolved/yetanotherforum/yaf_postst220_Lucid-Dream-Network.aspx
We are the gamers constantly programming our experience