The Virtual Retinal DisplayTM (VRDTM) technology is a new display technology being developed at Microvision Inc. The displayed image is scanned onto the viewer's retina using low- power red, green, and blue light sources. Microvision's proprietary miniaturized scanner designs make VRD system very well suited for head-mounted displays. In this paper we discuss some of the advantages of the VRD technology, various ocular designs for HMD and other applications, and details of constructing a system MTF budget for laser scanning systems that includes electronics, modulators, scanners, and optics.© (1999) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.