This paper presents ways of approaching the design of successful character-based interactive installations. We rationalize our arguments within the context of both Disney's "illusion of life" and Daniel Dennett's "intentional stance". We present six perspectives from which intentional characters can be viewed: as interactors on a variety of time scales; as reciprocal interactors with each other; as entities exhibiting a dynamic expressive range; as creatures with life cycles; as a combination of allusions to existing media; and as a collection of well-balanced components. By conceptualizing characters in these ways, creators can generate installations that enable participants to read the desires, beliefs, and actions of the characters. This approach forms the basis of a successful character-based interactive installation. Keywords Animated characters, interactive graphics, interface design, autonomous agents.