Some colleagues of mine at Intel Research/University of Washington recently got permission to post a video of thier research project from UIST 2009. It's a really nice idea that I wish I had done myself and, in my opinon, is one of the better applications of cheap pico projectors that I've seen.
Using pico-projectors and cameras mounted on a laptop, you can take advantage of nearby table space around the laptop to effectively expand your workspace at will. The video is a little stiff but, like many good ideas, you get the jist of it pretty quick.