Multichannel virtual reality visualization is the future of complex simulation with a large number of visual channels rendered and transmitted over high-speed networks like National LambdaRail (NLR). POC proposed to develop a next generation "true" 3D visualization system that works without headwear and to link it through the NLR with a remote computing center. To accomplish this goal we have developed in Phase I a fully functional 3D Multichannel Networked (3DMCN) system based on stereoscopic principles and compatible with the NLR network. One of the enabling technologies that is being developed in this project is multicorrelated channel video compression, which takes advantage of spatial redundancy in multiscopic channels. The Phase I demonstration included stereoscopic 3DMCN system linked to live real-time high definition (1080i) dual-channel video. In Phase II we will continue the development of a new compression scheme that can offer 200-300% improvement in compression ratios for multiscopic channels versus independent channel compression used in other state-of-the-art compression approaches. We will also concentrate on the improvement of the existing true 3D visualization system in terms of higher resolution, lower channel-to-channel crosstalk, and wider field-of-view.