In this paper we present the results of a study to determine the effect and efficacy of a Virtual Reality game designed to elicit movements of the upper extremity. The study is part of an on-going research effort to explore the use of Virtual Reality as a means of improving the effectiveness of therapy for children with motor impairments. The current study addresses the following questions: 1. Does a VR game requiring repetitive motion sufficiently engage a child? 2. Are there detrimental physiological or sensory side-effects when a child uses an HMD-based VR? 3. Are the movements produced by a child while playing a VR game comparable to movements produced when carrying out a similar task in the realworld? Based on study results, the enjoyment level for the game was high. ANOVA performed on the results for physical well-being pre- and post-VR showed no overall ill-effects as perceived by the children. Playing the game did not effect proprioception based on pre- and post-VR test scores. Motion data show similar, but not identical, overall movement profiles for similar tasks performed in the real and virtual world. Motor learning occurs in both environments, as measured by time to complete a game cycle.