This invention relates to computer controlled exercise machines and provides the user with a wide variety of interactive exercise options controlled by software. A virtual reality hybrid of virtual and real environments is provided which permits the user to perform significant physical exertion by applying forces to the machine while viewing images on a head mounted display. The invention permits the user to view his own hands and body superimposed over a computer generated image of objects that are not actually present while maintaining parts of the exercise machine that the user physically contacts, such as a handle, superimposed over the computer generated image. As the user exerts forces against the machine (such as the handle) he perceives that he is exerting forces against the objects the images represent. The invention includes a video camera and computer adapted to record images from the real world which may be combined with computer generated images while retaining the proper spacial orientation to produce a composite virtual reality environment. Virtual reality exercise regimens adapted to the user's individual capabilities, virtual reality exercise games, virtual reality competitive sports, and virtual reality team sports are disclosed.