This paper presents a study that explores the use of mediation in virtual environments (VEs) used for cultural storytelling. A VE was created in which a traditional San story was told. Two forms of mediation were used: visual mediation and audio mediation. Four versions of the VE were implemented, differentiated by the type and amount of mediation included. 77 subjects were tested, each experiencing only one of the versions. Measurements of presence, story involvement and enjoyment of each user were taken. A factorial analysis of variance, with a between-subjects design was used. Audio mediation was found to have an effect on presence(F = 138.8, p < 0.002). Visual mediation was found to increase story involvement (F = 9.49, p < 0.003). Both the interaction between the mediations, and audio mediation increased enjoyment (F = 5.87, p < 0.02 and F = 4.01, p < 0.05 respectively). Therefore, the use of subtle mediation that appears natural in the VE setting was shown to be effective. The effects of audio mediation on presence suggests that it is an important addition to any VE. And, in the context of virtual storytelling, visual mediation is valuable in conveying a narrative more successfully
