The premise of the Creative Technology Project, a collaboration by Autodesk, Inc., the School of Education at Oregon State University, and Novato Unified School District in the San Francisco Bay Area, was that children's cognitive abilities could be enhanced by having them develop, displace, transform, and interact with 2D and 3D computer-generated models. Subjects of the study were 23 elementary students between the ages of 8 and 11 who worked at either a computer workstation or a virtual reality/cyberspace system. Four cognitive ability tests were administered to the subjects: the Differential Aptitude Test, Minnesota Paper Form Board Test, Mental Rotation Test, and Torrance Test of Creative Thinking. Results of the project showed that spatially-related problem-solving abilities of children are influenced by training in visualization and mental manipulation of two-dimensional figures and displacement and transformation of mental images of three-dimensional objects. Further research regarding computer workstation graphic-based treatments and perceived realism and their relationship to problem solving should be undertaken. It is concluded that the technology known as virtual reality is highly promising and deserves extensive development as an instructional/training tool. (Author/ALF)