Many of the characters in the game were employees of Viridis in costume. They would walk on a treadmill while being video captured. The data would then be hand-edited down to a limited number of animations per character.
The receptionist played the main role of Zelda. Randy Casey, the lead programmer, was the zombie found in a few of the dungeons (he was wrapped in toilet paper).
Other creatures were small figures created by hand and animated one frame at a time.
The name of the land Zelda must venture to, Tolemac, is Camelot spelled backwards.
Unlike the other two Zelda games on the CD-i, which had animated cut scenes, this one used actors in costumes in its cutscenes.
The reason Nintendo licensed their Zelda characters to Philips Interactive was because Phillips and Nintendo were co-creating a CD-ROM add-on for the SNES. The contract between them allowed Philips to create games with the Mario and Zelda characters. Although Nintendo never released a CD-ROM add-on for SNES, they did have the legal contract with Philips, so Philips was able to create three Zelda-based games and one Mario-based game.