Stroke is one of the leading causes of death and disability worldwide. Its prevalence calls for innovative rehabilitation methods. The Rutgers Arm is a novel upper extremity rehabilitation system consisting of a low-friction table, three-dimensional (3D) tracker, custom forearm support, PC workstation, library of Java 3D virtual reality (VR) exercises, clinical database module, and a tele-rehabilitation extension. The system was tested on a chronic stroke subject, under local and tele-rehabilitation conditions, over 5 weeks of training. Results show improvements in arm motor control and shoulder range of motion, corresponding to improved Fugl-Meyer test scores. Exercise duration, level of difficulty, and patient motivation were maintained under tele-rehabilitaion. A 1-week retention trial showed that gains were maintained.