In this paper we present our Networked Virtual Environment (NVE) System, called W-VLNET (Windows Virtual Life Network), which has been developed on the Windows NT Operating System (OS). This paper emphasizes the Real-Time aspect of this NVE system, the advanced interactivity that the system provides and its ability to transfer data across the Internet so that geographically distant users can collaborate with each other. Techniques for communication, scene management, facial and body animation, and general user in-teraction modules are detailed in this paper. The use of VRML97 and MPEG4 SHNC is overviewed to stress the compatibility of the system with other similar Virtual Reality sys-tems. The software provides realistic virtual actors as well as sets of applicable high-level actions in real-time. Related issues on obtaining actor models and animating them in real-time are presented. We also introduce a case study to show an example of how the system can be used.