1. A method of occluding virtual objects with a real world human in augmented reality comprising: a. Creating an orthogonal plane billboard with soft texture edges representing a user's head; b. Creating an orthogonal plane billboard with soft texture edges representing a user's torso; c. Positioning and orienting the head billboard using motion tracker data; d. Positioning and orienting the torso billboard relative to the head billboard; e. Displaying the head and torso billboards in real-time 3-D to correspond to the location of a real person; and f. Mixing the resulting image with a live image of a real person.