Grids provide infrastructures and solutions to solve large scale cooperative problems such as large scale distributed virtual environment simulation, multiinstitutional scientific computing and data analysis, etc. In this paper, the key techniques for Grid computing based large scale Distributed Cooperative Virtual Environment Simulation (GDCVES) are discussed and a hierarchical architecture of GDCVES is proposed. The solutions of GDCVES, such as resource management, massive data management, security aware task scheduling, and fault-tolerance are also discussed. To evaluate the feasibility and scalability of GDCVES, a prototype was implemented and the simulation workflow framework is also analyzed.