The ability to build and control exposure through a seamless synergy of interaction and narration is a strongly required feature of a new type of immersive-VR training and therapy system. This paper presents a practical approach for immersive-VR training and therapy applications based on interactive storytelling. It provides detailed description of a working implementation of the interactive narration space (INS); this approach combines and satisfies both interaction and narration requirements through the use of high-level social interaction. By introducing the social channel, we aim at minimizing the contradictions between control over the story required by the trainer/therapist and interaction required by the trainee/patient. These concepts and their practical realization have been investigated in the context of emergency-situation training and psychotherapeutic exposure, and could validate the usability of mediated interaction with a virtual assistant