This report covers the analysis, design and implementation of an augmented reality (AR) museum prototype. The system is built as modules for the PAVE (Parallel Architecture for Visual Effects) framework, and hence the performance of the system scales on multiprocessor PCs with a measured gain of 54% from 1 processor to 2 processors. The system utilizes 3D graphics hardware for visualization in real time and supports binding of dynamic visual effects to 3D objects. The system runs in real time with a minimum frame rate of 9,1 frames/second on the test machine used. The design covers the overall system architecture, enhancements made on the PAVE framework and the description of suitable algorithms to meet the requirements for the AR museum.