The Stanford team found a clever way to make your eyes focus inside its device. Using the same principal as a "light-field" camera like the Lytro, but in reverse, they built a headset that has transparent LCD panels stacked in layers, which each layer representing a light field with the correct depth information. As shown in the video simulation (bottom) that helps your eyes to naturally shift focus between front and near objects.
Before any of that can happen, however, there's still a lot of work to do. The extra images required for light-field effects cause "rendering times to grow quadratically," according to the paper. The stacked display will also need to be brighter and have more resolution to reduce artifacts like diffraction.
See the full story here: http://www.vrcircle.com/post/VR-Sickness-Leave-Your-Sick-Bags-Behind-Thanks-to-Light-Field-VR