A method for interactively defining a virtual-world space based on real-world objects in a real-world space is disclosed. In one operation, one or more real-world objects in the real-world space is captured to define the virtual-world space. In another operation, one of the real-world objects is identified, the identified object is to be characterized into a virtual-world object. In yet another operation, a user is prompted for user identification of one or more object locations to enable extraction of parameters for real-world object, and the object locations are identified relative to an identifiable reference plane in the real-world space. In another operation, the extracted parameters of the real-world object may be stored in memory. The virtual-world object can then be generated in the virtual world space from the stored extracted parameters of the real-world object.