This Small Business Innovation Research (SBIR) Phase II project, The Digital Machine Shop, is a practical immersive precision modeling system. With the aid of Digital Jigs, Digital Blades, and other innovative techniques, the user sculpts and assembles precision objects in a natural fashion with his or her own two hands. Real users from many backgrounds have validated the approach, showing these new paradigms to be easy to learn and easy to use. They have achieved comfort and productivity in a fraction of the time required by conventional modeling products because natural dexterity and real-world strategies apply. The apparent absence of Repetitive Stress Injury (RSI) in the Digital Machine Shop's two-handed interface promises to be a bonus of immeasurable value. The ease of use of the Digital Machine Shop will serve to tap the talent, creativity, and expertise of a large segment of society that has been discouraged by the complexity and tedium of conventional interfaces. Those comfortable with digital methods will benefit from enhanced productivity and creativity. The Digital Machine Shop embodies enabling technologies whose impact far exceeds the scope of this project. It is through the example of practical innovation that the industry will adopt new and improved methods. The potential commercial applications include: architectural design, visual simulation modeling, game modeling, industrial design, automotive design, education, fine arts, and medicine.