1. A method of operating an interactive system including a head mounted cell phone, comprising: operating a camera of the head mounted cell phone to capture an image of a physical environment where a user of said interactive system is physically located; operating a processor in the cell phone to process the captured image to detect one or more objects in the physical environment where the user of said interactive system is physically located; and displaying, on a display device of said head mounted cell phone, a simulated environment to said user, said displaying a simulated environment including displaying on the display device of said head mounted cell phone multiple frames between the capture of the image of the physical environment and a capture of another image of the physical environment, said displaying a simulated environment including displaying a visual representation of at least a first detected object as part of said simulated environment.