All of the training is done in a Level D flight simulator. These are moving simulators that have to be certified by the FAA in order for training to take place. It's pretty close to flying the real thing and the instructors can program your "aircraft" to experience several malfunctions ( some all at once ) in flight. During my training I experienced an engine fire, lost pressurization, complete electrical failure, runaway trim, and windshear, just to name a few. It's great training designed to push the pilot to the limits of his/her abilities. If you have to get training for a type rating, I highly recommend Flight Safety.
Here is a picture of the Lear 60 sim at the Tucson
training facility. I was too busy to get any pictures
of the inside.