Even more cool Augmented Reality stuff coming out of Microsoft Research. My favorite shown is the SLAM projector, which combines Kinect with a Pico Projector. It can map an environment in real time and allows the user to project virtual things onto the physical world. For example, touching on a book can make a fountain of spheres appear, run down the pages onto the desk and off the desk into a trash can. It’s a very unreal experience.
More info including on video here on Engadget.