The distinction between the sense of body-ownership and the sense of agency has attracted considerable empirical and theoretical interest lately. However, the respective contributions of multisensory and sensorimotor integration to these two varieties of body experience are still the subject of ongoing research. In this study, I examine the various methodological problems encountered in the empirical study of body-ownership and agency with the use of novel immersive virtual environment technology to investigate the interplay between sensory and motor information. More specifically, the focus is on testing the relative contributions and possible interactions of visual-tactile and visual-motor contingencies implemented under the same experimental protocol. The effect of this is supported by physiological measurements obtained from skin conductance responses and heart rate. The findings outline a relatively simple method for identifying the necessary and sufficient conditions for the experience of body-ownership and agency, as studied with immersive virtual environment technology.