The present invention is a head-mounted virtual display apparatus based on a non-cross-cavity optical configuration, in which a near-eye light deflecting element (LDE) is located in the peripheral field of view. Positioning of the near-eye LDE in the peripheral field of view provides the user with simultaneous access to an inset magnified image of a miniature display and an unobstructed forward field of view of at least 35 degrees. Active and passive alignment means, including articulating connections and image warping electronics, allows for correction of geometric distortion arising from folding of the optical train, and orthogonal alignment of the virtual image plane with the optical axis between the user's eye and the virtual image plane.