This article is from the Star Trek Tech FAQ, by Joshua Bell inexorabletash@hotmail.com with numerous contributions by others.
A Holodeck can create simulations in the following ways:
* The walls can generate holographic images which appear to extend
for an unlimited distance. For example, the walls in "Encounter at
Farpoint" and "Ship In A Bottle" [TNG].
* Holograms can be projected into space. For example, a when Picard
went horseback riding ("Pen Pals" [TNG]), most of the trees were
probably intangible projections since he wasn't going to run into
them.
* Holograms can be augmented with force beams to simulate solid,
tangible objects. An example would be the book Picard threw in
"Ship In A Bottle" [TNG].
* Holograms and force beams can be augmented with replicator
technology to provide actual substance. Food on the holodeck would
be of this nature, despite what Paris said in "The Cloud" [VOY]
(he was probably joking) or eating it would be very unpleasant.
Most inanimate objects which are likely to be eaten or have
properties difficult to simulate (e.g. water) would be simulated
in this way.
* An animate object is comprised of a partially stable form of
matter created by the Holodeck replicators for use in the Holodeck
only. This material is stable only within a Holodeck or holosuite,
and degrades into energy if removed. (Encyclopedia).
This is matter held in place by force beams operating at a
molecular level, as opposed to actually replicating the object
down to the molecular bonds. (Speculation based on the description
in "Phage" [VOY] of how the "HoloDoc" works.) Without the force
beams, the object disintegrates. Examples would be the gangsters
in "The Big Goodbye" [TNG], Picard's horse in "Pen Pals" [TNG], or
Minuet in "11001001" [TNG].
Note that the wall/hologram/force beam simulations are easy for the
holodeck to carry out, and that the hologram/force beam/replicator
simulations were possible during "Encounter at Farpoint" (when Wesley
got soaked).
It is possible, however, that the Holodeck-matter simulations, were
not possible before the upgrades made by the Bynars in "11001001"
[TNG]. This would explain Riker's surprise at the realism of the
Minuet simulation.
Also, if an object's status changes the simulation type will change
seamlessly as well. For example, someone sees a distant tree (walls),
approaches it (hologram), leans on it (force beams), breaks off a
branch (Holodeck-matter), then picks and eats an apple (replicated).
 
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