Tony,

While that description makes sense (and is very interesting), I don't really see how that helps differentiate between viewing a game being played and viewing/playing it yourself.

This is the opposite scenario, of course, where the inner ear transmits that the body isn't moving but the eyes say it is. But I'm not sure I see how cue-conflict would explain why controlling the experience is any better (or worse, for that matter).

Again, I'm not saying you're wrong, and I wouldn't be surprised if I got very queasy from simply watching gameplay, but I'm interested in your response to this particular part of the issue.
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Matt