Augmenting reality

Remember the Playstation EyeToy?
Here's a technology preview using a webcam and printed (no printer, so I figured a scribbled logo would work just as well - it did)...
The video on the site shows it in action...
I can this imagine printing off a bunch of symbols, drawing live paths for the game characters, drawing paths for the characters to follow.
And for collaboration apps; augmenting maps and diagrams on screen by drawing on a blank piece of paper, whiteboard apps that overlay sketches etc.
Eyetoy has been massively update on the PS3, btw (skip to ~1m in on this Youtube video), but I like the idea of similar tech integrated into a PC's webcam.
(via Offworld, BoingBoing's new games blog)

