: In this paper we report on the progress of an international EU/IMS research project to develop an Immersive free-form Design Application using Virtual Reality and Haptic Immersion Technologies. The results of a detailed Requirements Analysis for the application interaction are presented. The application uses a Virtual Sculpting metaphor to interactively define arbitrary formed shapes as they are used in the area of industrial design prototyping of consumer electronic products. The implementation is based on a Enhanced Direct Manipulation Free-Form Deformation Algorithm.