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This paper presents a model for simulating emotion and personality in interactive systems. This paper argues that by introducing simulated emotional responses and state dynamics to future systems, they will provide a more life-like, engaging and interactive experience to their users, and provide a more effective and efficient user interaction. Further, by simulating Emotional Intelligence in a system, a developer may be able to provide a more tailored user experience, and be provided with more control over the outcome of a user's interaction with their system. Emotion theory and expression are explored, and a model is presented based upon emotional states. Implementation of this model is then presented as an intelligent back end process that utilises dynamic video stream analysis that feeds into an interactive display. The proposed system, and its hardware implementation is presented, followed by a discussion of future areas of research.