You can even open apps from inside the virtual iPhone, which is shown just suspended mid-air, over the mobile carrier's logo.

It's in aid of publicizing the launch of the iPhone in Israel, on the Orange network, and is just another example of augmented reality impressing the pants off me. [Ogmento via Recombu]

NEC TVs were set up in the Tokyo station and as someone walked past, their image was captured on the screen and superimposed with a blue wig or even a nurse's dress if they were lucky. What the hell blue hair has to do with donating blood is beyond me, but it's an innovative way to turn heads. Perhaps they should trial it in the Western world, where we're not already desensitized to the image of scantily-clad cartoon characters. [CrunchGear]

A new kiosk by Toppan Printing Co Ltd, being tested in three of Japan's supermarkets now, allows shoppers to look up a QR code (then print it, or have it on their phone's screen), hold it up to the machine and receive a free product sample.

The bigger gimmick, however, is that you can then hold the actual product up to the vending machine and get a bunch of floaty infographics (we know, it's a little late once you've already purchased a product). But if the software was tweaked a bit, something like a can of Coke could become a bubbling mana potion in your hand. And as long as you consumed said drink while looking at yourself on the augmented LCD screen, well, nothing special would happen.

Or would it? [Tech On via UberGizmo]

Tempest's "Magic Projection" system utilizes a laptop, a small projector, a PS3 Eye Toy, LED tracking markers and, of course, his bad ass proprietary software. As you will see in the video, the effect is pretty spectacular. In fact, his whole gadgety, virtual approach to magic is impressive. Check out his webpage for more tricks. [Marco Tempest]

The new 3D objects play a big role in these tours: If you go to the famous crossing at Abbey Road, you can see the Beatles crossing the street in three-dee, which is kind of cool knowing that only Ringo is alive now (Paul still has no shoes, so he is dead). Or if you travel around Rome, for example, a historic tour developer would be able to include a Coliseum overlaid on the old one. [Layar]

And McDonald's is getting in on the action, too. It'll have special cards that bring up a controllable mechanical toy when you hold it up to your Webcam and visit an Avatar-branded site. Goofy yes, but definitely better than Best Buy's augmented reality efforts. [Variety via DVICE]

In the words of the creators:

Layar is an application that overlays your view of the real world with waypoints representing your favorite coffee place, the movie theatre you're trying to find, or in this case, where some of that $787 billion from the American Recovery and Reinvestment Act is going. If you have an iPhone 3GS or Android device you can install the Layar app for free and then search for "recovery" or "sunlight" within Layar to find this layer. The layer works best near large cities where you are most likely to find recovery contracts.

I can tell you where the recovery didn't go. It didn't go to the bike path near my house because that shit is all torn up. Bigger bailouts, I say! [Sunlight Labs via Boing Boing Gadgets]

Which isn't to say I won't totally do this when I have a few spare minutes, because when you get to thinking about it, this is pretty great: our host in the video doesn't show off anything more than Google Street View. But imagine using this hobo helmet with camera-based apps like Wikitude or Layar, or replacing the Magic with an iPhone and loading up the new version of Yelp? Excellent. [Twitter via Slashgear]

The HUD replaces technical manuals on a bulky laptop with floating instructions, labels and oh yes, 3D models of tools right in front of the mechanic. The wrist-mounted interface is run off an Android-powered G1 (which looks much cooler as gauntlet). Apparently Android's seeing a lot of use as a tool of war. You can check out a video of it here. [Technology Review via PopSci]

The sidewalk in front of the store has been fitted with small infrared lights, and the installation with infrared cameras; this is how Sniff, an art project designed by Karolina Sobecka and Jim George, knows where its audience is, and can anticipate which direction they're moving.

Some might see a playful interactive exhibit here, but I see something more insidious. Walking by confused, platter-eyed puppies every once in a while is a part of city life—each time you do it, you make an easy—but still present—decision not to buy that dog that evidently loves you more than anything, for some reason. With Sniff, you don't have a choice: he seems to like you, but you physically can't take him home; likewise, there no risk that your walkby buddy is going to get incinerated at a shelter, because he isn't real. Technology, you've stolen the richness from our relationships to dogs that aren't ours. Thanks. [Sniff via Urlesque via Neatorama]

Since OS 3.1 dropped, giving devs (almost) open access to the iPhone's camera we've seen a minor avalanche of augmented reality apps hit the store; some have been interesting, like Yelp's, but most feel a little bit like tech demos. Layar, for what it's worth, has grown up since we last saw it: now you can overlay all kinds of data, from geotagged Wikipedia entries to Flickr photos to local Tweets.

You don't need a 3GS to use it—UPDATE: Oh, maybe you do—but without the compass function you kind of lose the WTF LIFE HUD appeal, and the app feels more like a party trick than a useful tool. Layar is live (and free) in the App Store as we speak. [Layar via Gadget Lab]

AUGMENTED FREAKIN' REALITY!!!!!

Remember back when butter, flour and sugar were enough? Now the American appetite has grown so vast that we'll be consuming Pokémon, movie advertisements and Nascar figurines in no time. Just wait for it: A bowl of Cooler Ranch Doritos topped with Cialis coupons is just an ad campaign away. [Mike Clare and Tellart viaMAKE]

If this sounds an awful lot like Wikitude, the AR Android app that just can't seem to eek its way into the App Store, that's because it is an awful lot like Wikitude—except with a more polished interface, and, well, iPhone support. (Sort of: non-3GSers need not apply). As with Wikitude, firing this thing up around a familiar location won't really blow your mind, since Wikipedia's geographic article density is still pretty low.

But if you're visiting a new place—that is, a place Wikipedia editors care to write about—Cyclopedia ceases to be an AR tech demo, and with adjustable search radii, a top-down map mode and non-geocaches Wikipedia searching, actually starts to be useful. Available now in the App Store for $2; video demo at the source link. [Chemical Wedding]

In this particular game, Miruko scans the real world for virtual monsters (ooook), fixing its aim when it finds one. Then the player can capture the monster using the iPhone camera, which is connected via Wi-Fi to the robot. [Pink Tentacle]

In fact, this festival sounds downright awesome. Originally designed as a study on the "geographic environment of behavior" in 2003, the event has morphed over the years into an "art and technology fest," said David Darts, the curatorial director for this year's event, in an interview with the New York Times.

Case in point, the aforementioned golf game, played with iPhones, GPS and plenty of pre-round stretching, is called Gigaputt. NYC avenues are the "fairways," the sidewalks are greens, and a series of 18 local bars serve as the holes. Much like a Wiimote with MotionPlus and Tiger Woods 10, players "swing" their iPhones and the on board accelerometer, coupled with custom software, drives the ball forward.

The fish tech, called Fish 'n microChips (get it?), is the work of NYU professor Natalie Jeremijenko. An array of LED-equipped bouys line the East River, where they monitor water quality and also flash whenever a fish (or body) wash by.

The chess game, also played with cellphones, is an eight by eight block grid mapped out by photojournalist Sharilyn Neidhardt. Human pieces are controlled by two chess master overlords from afar, much like the staff at Gizmodo.

The festival runs from this Friday and run through Sunday. While you're in town, why don't you stop by Elizabeth Street down in Nolita for the Gizmodo Gallery? Tech overload? Yes, please. [New York Times]

What's also cool is that the technology has spun off an augmented reality projection. It basically lets you cheat and line up shots like you can playing a pool video game. I'm betting it won't be long until we see that sort of thing show up in night spots where drunk folk can appreciate the eye candy. Oh, and unless you're a handbag trance fan, turn down your speakers for the video. [Deep Green via GrunchGear and Boing Boing Gadgets]

Sony Labs has been researching this technology for a while. I think most people are familiar with it from Smile Shutter in the Sony CyberShot, and autofocus with face detection. But now, we've migrated this technology to PS3, and made it available as an SDK.

Through its various points of detection, the system can recognize individual faces and overlay a different model for each person. And that's where things get a little more interesting. Aside from augmented-reality uses, Sony imagines the tech being used to generate virtual world avatars on the fly...[DigInfo]

Mikhailov also confirms that the combination of camera tracking, gyroscopes and accelerometers are precise enough for the wand to be used in more complicated games, not just casual titles.

I'm looking forward to seeing how the multiple axis tracking may improve on traditional dual stick DualShock controls. We should hear more from the Tokyo Game Show on September 24. [Sony]

Look beyond the cheesiness of the music, smug actor and his Oakley Thumps for a moment and actually examine the incredible practicality at work—highlighting/identifying parts of an engine and offering step by step instructions for completing complicated procedures. Give me a world UI like this, and I won't just change my own air filter. I'll be able to remove my own appendix.

Oh, and my brain will never memorize how to do anything ever again, but let's forget that part... [BMW via MediaIte via Jalopnik]