As a project, I suggest the implementation
of storytelling in virtual environments,
with (possibly) an embodied agent as the narrator.
You may further explore or evaluate
the role of agents in multimedia applications
and virtual environments.
For further reading in (real) VR, I advice [VR],
and for gaining an understanding in story telling
and applications you may try to get hold of the proceedins,
of
TIDSE 2003, and
TIDSE 2004.