Technology Review has a interesting blog post on the material being presented at the International Symposium on Mixed and Augmented Reality (ISMAR 09) next week in Orlando.
The post includes several videos of some pretty amazing stuff.
My favourites are –Augmented Sketches by researchers at the University of Canterbury, NZ.
And the multi-touch interaction
And finally this handheld AR game which manipulates the game view of the world to prevent multiple players colliding during intense game play.