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I can't find the article, but recently scientists have been able to reproduce images of what people are "thinking". The image looks blurry, but you can tell what object the person is thinking about.
If we can get one-way transmission from brain to computer, it won't be to terribly long before we're about to do it both ways. Once we've achieved that, it's a matter of time before the signals become more clear and realistic.
There is more high tech VR then that, thats just scrathing the surface. they even have one with a low traction disk you stand on and lock yourself into with special shoes and running, ducking, jumping is translated into the game.