The convergence of multimedia, virtual reality and the Internet is promoting low-cost multimedia virtual environments which are easily accessible to large network communities. These environments, which facilitate usability and enhance user experience, are very suitable for supporting user-oriented application domains such as e-learning and entertainment. This paper presents a multimedia virtual environment, namely the Virtual Video Gallery, an advanced, distributed media on-demand system which is browsable through a virtual world. By taking a virtual walk inside the gallery, the user can interactively select, preview, watch and control multimedia sessions. While the user-centred design of the system relies on UML-based modelling techniques, system implementation is obtained by the integration of Java, VRML and Web-based technologies. In order to evaluate the user-oriented effectiveness of the Virtual Video Gallery and compare it to currently available Internet-based MoD systems, the usability testing of the system was established for deriving both summative and formative usability data.