In virtual environments, perceived egocentric distances are consistently underestimated when compared to the same distance judgments in the real world. The research presented in this paper explores two possible causes for the compressed distance perception in virtual environments: (1) real-time computer graphics rendering, and (2) immersive display technology. Our results show there is a significant difference in distance judgments between real and virtual environments. However, the differences between distance judgments in virtual photographic panorama environments and traditionally rendered virtual environments are small, suggesting that the display device is affecting distance judgments in virtual environments.