In projection-based Virtual Reality (VR) systems, typically only one headtracked user views stereo images rendered from the correct view position. For other users, who are presented a distorted image, moving with the first user’s head motion, it is difficult to correctly view and interact with 3D objects in the virtual environment. In close-range VR systems, such as the Virtual Workbench, distortion effects are especially large because objects are within close range and users are relatively far apart. On these systems, multi-user collaboration proves to be difficult. In this paper, we analyze the problem and describe a novel, easy to implement method to prevent and reduce image distortion and its negative effects on close-range interaction task performance. First, our method combines a shared camera model and view distortion compensation. It minimizes the overall distortion for each user, while important user-personal objects such as interaction cursors, rays and controls remain ...