[hinkley]

Continuing this thought instead of editing:

If you're worried about how to handle physics, a really simple solution here would be to slice your VR onto multiple planes of existence, from outside to inside. You have a virtual street full of fifty businesses, you can lay out the insides of the business into a Euclidean space, and then doorways are wormholes from a less dense plane to a more dense one, so you can walk around the block faster than you can walk through one of the buildings. Recurse that for as many layers of tesseract as you want to implement (why not rooms in the building that are bigger than the inside of the building too?). But once you've broken 1:1 people are going to want to change their minds, so you might be better off using some sort of graph to represent space instead of a 3d matrix.