Not too long ago, a VR application called Arachnophobia was released and received much criticism for its improper design (many negative comments). So now we know how not to treat peoples' fear of spiders. http://kotaku.com/virtual-reality-arachnophobia-therapy-is-a-definite-nop-1780550604
In order to make a convincing treatment option for fear of spiders, the psychologists working with PsyTech came up with an experiment as follows. It involves putting spiders inside a fish bowl initially on the table top while the user/patient sits virtually from a distance. Only 1 spider is visible, while the others are hidden behind an obstructing object as shown in step 1 diagram. A headless avatar is used to embody the user in the environment.
After the user is aware of the first spider, more spiders crawl over the obstacle revealing themselves.
The fish bowl reveals an opening, allowing a single spider to come out toward the user but not getting too close.
The single spider is allowed to approach the virtual hands on the table, while the other spiders come out and stop at a distance.
Eventually, all spiders are allowed to get close to the user/patient.