1. A method for interactively defining a virtual-world space based on real-world objects in a real-world space, comprising: (a) capturing one or more real-world objects in the real-world space to define the virtual-world space; (b) identifying one of the real-world objects to characterize into a virtual-world object; (c) prompting user identification of one or more object locations to extract parameters of the real-world object, the object locations being identified relative to an identifiable reference plane in the real-world space; (d) storing the extracted parameters of the real-world object in memory; and (e) generating a virtual-world object in the virtual-world space using the stored extracted parameters of the real-world object.