Virtual studio technology enables the mixing of physical and digital 3D objects and thus expands the way of representing design ideas in terms of virtual video prototypes, which offers new possibilities for designers by combining elements of prototypes, mock-ups, scenarios, and conventional video. In this article we report our initial experience in the domain of pervasive healthcare with producing virtual video prototypes and using them in a design workshop. Our experience has been predominantly favourable. The production of a virtual video prototype forces the designers to decide very concrete design issues, since one cannot avoid paying attention to the physical, real-world constraints and to details in the usage-interaction between users and technology. From the users' perspective, during our evaluation of the virtual video prototype, we experienced how it enabled users to relate to the practicalities and context of applied technology. One of the main limitations experienced in the creation of the virtual video prototypes is the lack of user-involvement.