The paper presents LIRKIS CAVE, a Cave Automatic Virtual Environment, developed and built at the home institution of authors. The most significant features of LIRKIS CAVE are a compact and transportable design and use of LCD displays, organized in a decagon. The CAVE is described in terms of hardware and software and its performance is evaluated by a series of experiments. The paper also outlines future research and development activities related to the CAVE, which focus on the area of rehabilitation and education of handicapped people.