writes "Augmented reality comes in many forms and Microsoft Research seems to have found a new twist on the idea — augmented handheld pico projectors. The effect is as if the projector was a flashlight illuminating the virtual world. Using various position sensing devices — and yes a Kinect is one of them — the team allow the user to point the projector at any part of a room and see the virtual world as if in a beam of a flash light.
Some of the novel ideas include using the users shadow to interact with the virtual objects and creating the shadows that an object would cast if it was real. They even demo a basic shadow based user interface complete with gestures and not a rabbit in sight..."Link to Original Source