Virtual Acoustic Space is a multidisciplinary research and development group working on the perception of space through sound alone. It involves creating the illusion that objects are covered with small sound sources, emitted constantly in specific patterns. A virtual world of sound is created, where physical bodies produce sounds from all coordinates of their surfaces. The project is a collaboration between the IAC and the University of La Laguna. 2004 saw the completion of the instrument development phase, in which the IAC was involved. The PEGASO system, designed to simultaneously reproduce up to 32 combinations of sounds, was delivered. The HRTF function measurement system, a unique research infrastructure sited at the ITC (Instituto Tecnológico de Canarias), was successfully commissioned and the accompanying user manuals and electronic documents were produced. In December 2004 work commenced on moving all of the equipment installed at the IAC to the ITC to allow research to continue there.