MetaSpace II (MS2) is a social Virtual Reality (VR) system where multiple users can not only see and hear but also interact with each other, grasp and manipulate objects, walk around in space, and get tactile feedback. MS2 allows walking in physical space by tracking each user's skeleton in real-time and allows users to feel by employing passive haptics i.e., when users touch or manipulate an object in the virtual world, they simultaneously also touch or manipulate a corresponding object in the physical world. To enable these elements in VR, MS2 creates a correspondence in spatial layout and object placement by building the virtual world on top of a 3D scan of the real world. Through the association between the real and virtual world, users are able to walk freely while wearing a head-mounted device, avoid obstacles like walls and furniture, and interact with people and objects. Most current virtual reality (VR) environments are designed for a single user experience where interactions with virtual objects are mediated by hand-held input devices or hand gestures. Additionally, users are only shown a representation of their hands in VR floating in front of the camera as seen from a first person perspective. We believe, representing each user as a full-body avatar that is controlled by natural movements of the person in the real world (see Figure 1d), can greatly enhance believability and a user's sense immersion in VR.