Recent years have seen the proliferation of VR-based dental simulators using a wide variety of different VR configurations with varying degrees of realism. Important aspects distinguishing VR hardware configurations are 3D stereoscopic rendering and visual alignment of the user's hands with the virtual tools. New dental simulators are often evaluated without analysing the impact of these simulation aspects. In this paper, we seek to determine the impact of 3D stereoscopic rendering and of hand-tool alignment on the teaching effectiveness and skill assessment accuracy of a VR dental simulator. We developed a bimanual simulator using an HMD and two haptic devices that provides an immersive environment with both 3D stereoscopic rendering and hand-tool alignment. We then independently controlled for each of the two aspects of the simulation. We trained four groups of students in root canal access opening using the simulator and measured the virtual and real learning gains. We quantified the real learning gains by pre- and post-testing using realistic plastic teeth and the virtual learning gains by scoring the training outcomes inside the simulator. We developed a scoring metric to automatically score the training outcomes that strongly correlates with experts' scoring of those outcomes. We found that hand-tool alignment has a positive impact on virtual and real learning gains, and improves the accuracy of skill assessment. We found that stereoscopic 3D had a negative impact on virtual and real learning gains, however it improves the accuracy of skill assessment. This finding is counter-intuitive, and we found eye-tooth distance to be a confounding variable of stereoscopic 3D, as it was significantly lower for the monoscopic 3D condition and negatively correlates with real learning gain. The results of our study provide valuable information for the future design of dental simulators, as well as simulators for other high-precision psycho-motor tasks.