This paper presents selected results from an experimental study designed to compare fantasy play in a virtual and physical setting. Twenty-two children (aged 3 and 4) played in same-sex dyads with a real wooden tree house and its virtual implementation on a DiamondTouch tabletop. The study evinced several problems in the interaction with the tabletop as children often struggled to drag the objects displayed on the surface. An error analysis is presented and results are used to propose guidelines for improving the use of DiamondTouch tabletops by young children.