A system and method for musical collaboration in virtual space is described. This method is based on the exchange of data relating to position, direction and selection of musical sounds and effects, which are then combined by a software application for each user. The musical sampler overcomes latency of data over the network by ensuring that all loops and samples begin on predetermined temporal divisions of a composition. The data is temporarily stored as a data file and can be later retrieved for playback or conversion into a digital audio file.