This user study investigated how rendering quality contributes to the sense of presence and level of task performance of participants in a virtual environment. Fifty-five participants performed the task of dropping four objects in a two-room, virtual environment which was drawn with varying degrees of texture and lighting quality. Their physiological reactions were measured along with their accuracy at dropping objects onto a target. In addition, a series of questionnaires were administered to examine the participant's subjective sense of presence and object recall. An increase in physiological response, particularly heart rate, was demonstrated across all rendering conditions. Gender differences were noted in physiological responses, spatial ability tests, and simulator sickness questionnaires.