Check out this cool video of Microsoft’s prototype for an augmented reality system known as “PlayAnywhere“. The system combines a video projector and a sensing device that can detect a user’s gestures and the position objects placed on a surface in real time, and utilize that data to create a highly interactive and intuitive user interface.
http://www.youtube.com/watch?v=YRfWhUnYyY8[via VideoSift]
Technical Overview from Microsoft Research (PDF)