Many applications of Virtual Reality in Psychology and other social sciences require virtual environments that are populated with realistic, and often interactive, virtual characters. One of the pilot projects undertaken by RISE partners focuses on the development of realistic characters that can be used in two ways: 1. to exhibit behavior that is contingent to the state and actions of the user, and 2. to interact with the user by responding realistically to input. We have developed a set of characters that can be used in these two ways.