"Viennese computer scientist Daniel Wagner has figured out a way to show a virtual character on an i-mate SP5 cellphone, and when you move around with the cellphone, it appears that you’re floating around this virtual character in 3D. Other people with cellphones can also see this character from their points of view. Augmented reality, indeed. ..." (more ...)
In the comments on the gizmodo post there's also one or two interesting links apropos augmented reality.
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