This paper presents an integrated approach for interactive direct volume deformation and simultaneous visualization. The fundamental requirement is that interactive performance without pre-processing must be achieved for large volume data, where at any time up to one million elements participate in a deformation that is applied interactively by picking and dragging in the 3D view. Current physically-based approaches are still one or two orders of magnitude away from this goal. In contrast, our approach extends the non-physical ChainMail algorithm and combines it with on-the-fly resampling and GPU ray-casting. Special transfer functions assign material properties depending on volume density. The affected subvolume is deformed and resampled onto a rectilinear grid on the CPU, and updates the volume on the GPU where it is rendered using ray-casting. While the deformation is already being displayed, its quality is simultaneously refined via an iterative relaxation procedure executed in a parallel thread.