I saw Marco Casario's post yesterday about Johnny Chung Lee experiment using the Wii controls to create VR effects. I about gave up on the video, but then he got to the actual VR portion of the video and I must saw the effect is extremely good.
In the past the best 3D/VR effects I've seen were based on polarized 3D glasses—where there's a shutter in each lens that alternates between off and on (when one lens is on, the other is off.) This creates a pretty decent visual effect, but it can definitely lead to headaches.
This is by far the best example I've seen of 3D/VR on a purely 2-dimensional screen. The effect that Johnny is able to achieve is quite remarkable. I recommend watching the entire video, but it gets really interesting about 3/4 quarters of the way through.