So is the solution to focus on simulating a body within a fairly detailed simulated reality? Forget how you model emotions (which might be emergent from patterns of subtle physical sensations) how do you do prioperception in that context?

Also, do you cheat and allow the entities "imagination" to be a perfectly modifiable simulation, or do you allow "errors" to enter into the simulation? What about the ethics of maintaining the integrity of the events and reactions that compose the entity, and the possible responsibility to ensure that reactions continue, or that those events have something to do with our "real" world and are not entirely simulated?