This research presents a novel approach to virtual assembly that combines dynamic modeling with geometric constraint-based modeling to support low clearance manual assembly of CAD models. This is made possible by utilizing the boundary representation solid model data available in most contemporary CAD representations, which enables (a) accurate collision/physics calculations on exact model definitions, and (b) access to geometric features. Application of geometric constraints during run-time, aid the designer during assembly of the virtual models. The feasibility of the approach is demonstrated using a pin and hole assembly example. Results that demonstrate the method give the user the ability to assemble parts without requiring extensive CAD preprocessing and without over constraining the user to arrive at predetermined final part orientations. Assembly is successful with diametral clearance as low as 0.0001 mm, as measured between a 26 mm diameter hole and pin.