We simulate two dynamical, mass degenerate light quarks on 16^3x32 lattices
with a spatial extent of 2.4 fm using the Chirally Improved Dirac operator. The
simulation method, the implementation of the action and signals of
equilibration are discussed in detail. Based on the eigenvalues of the Dirac
operator we discuss some qualitative features of our approach. Results for
ground state masses of pseudoscalar and vector mesons as well as for the
nucleon and delta baryons are presented.Comment: 26 pages, 17 figures, 10 table