Google open sources Liquid Galaxy code
google-opensource.blogspot.com
google-opensource.blogspot.com
http://lucyabramyan.com/Site/Stage.html
One of my co-workers had built this awesome immersive environment using back-projection, so you didn't have any of the frame boundaries like the Google version did. It was particularly well-suited to viewing the panoramas sent back from the Mars rovers.
Of course, I'm not sure how practical something like this is, and it's very expensive to build.
At least some applications worked that way. I'm not sure why, but the one I tried had a teapot rendered over my head and I could see the snout sticking out in front of my face wherever I went.