We present blue-c, a new immersive projection and 3D video acquisition environment for virtual design and collaboration. It combines simultaneous acquisition of multiple live video streams with advanced 3D projection technology in a CAVE™-like environment, creating the impression of total immersion. The blue-c portal currently consists of three rectangular projection screens that are built from glass panels containing liquid crystal layers. These screens can be switched from a whitish opaque state (for projection) to a transparent state (for acquisition), which allows the video cameras to "look through" the walls. Our projection technology is based on active stereo using two LCD projectors per screen. The projectors are synchronously shuttered along with the screens, the stereo glasses, active illumination devices, and the acquisition hardware. From multiple video streams, we compute a 3D video representation of the user in real time. The resulting video inlays are integrated into a networked virtual environment. Our design is highly scalable, enabling blue-c to connect to portals with less sophisticated hardware.