1. A system for simulating welding activity; said system comprising: a welding tool for a simulated welding operation; a spatial tracker which tracks a movement and orientation of said welding tool using at least one optical sensor; a welding coupon; a helmet comprising a first display device to display a simulated welding operation to a user; a simulated welding console having a user input system and a second display device to display said simulated welding operation; and a processor based subsystem located within said simulated welding console which is operatively coupled to said spatial tracker and receives information from said spatial tracker related to said movement and orientation of said welding tool, where said processor based subsystem generates a plurality of simulated welding parameters based on said movement and orientation of said welding tool; wherein during said simulated welding operation, said processor based subsystem models a simulated welding surface for said welding coupon and displays said simulated welding surface on each of said first and second display devices; wherein during said simulated welding operation, said processor based subsystem creates a simulated welding arc between an emitting end of said welding tool and said simulated welding surface and simulates the creation of a weld puddle have real-time molten metal fluidity, real-time heat dissipation and real-time heat absorption characteristics during said simulated welding operation; wherein said processor based subsystem models said simulated weld puddle such that regions of a surface of said simulated weld puddle have both a displacement value and a heat value, where each of said displacement values and heat values are changed dynamically during said simulated welding operation to display on each of said first and second display devices the simulated deposition of material into said simulated weld puddle, and said dynamic changes to each of said displacement and heat values are based on said movement and orientation of said welding tool and on said plurality of simulated welding parameters, where said first and second display devices display a color for each of said regions which is based on said heat values; wherein said processor based subsystem displays a simulated completed weld bead on said first and second display devices which is based on said movement and orientation of said welding tool, based on said simulated welding parameters and based on a cooling threshold value for a transition of said welding elements from a molten state to a solid state, and wherein said displacement values are such that a solidified surface of said simulated completed weld bead is displayed above said welding surface of said welding coupon.