This research investigates the feasibility of using a desktop haptic virtual environment as a design tool for evaluating assembly operations. Bringing virtual reality characteristics to the desktop, such as stereo vision, further promotes the use of this technology into the every day engineering design process. In creating such a system, the affordability and availablity of hardware/software tools is taken into consideration. The resulting application combines several software packages including VR Juggler, ODE (Open Dynamics Engine)/OPAL (Open Physic Abstraction Layer), OpenHaptics, and OpenGL/GLM/GLUT libraries to explore the benefits and limitations of combining haptics with physically-based modeling. The equipment used to display stereo graphics includes a Stereographies Emitter, Crystal Eyes shutter glasses, and a high refresh rate CRT Monitor. One or two-handed force feedback is obtained from various PHANTOM haptic devices from SensAble Technologies. The application's ability to handle complex part interactions is tested using two different computer systems which approximate the higher and lower end of a typical engineer's workstation. Different test scenarios are analyzed and results presented with regards to collision detection and physical response accuracies.