Virtual Tabletop Gaming @GameSetWatch

GameSetWatch is following a development team at Carnegie Mellon University working on a virtual tabletop gaming application called Surfacescapes, using Microsoft's Surface technology. The article has a demo video and some general information:

Developed by a team at Carnegie Mellon University as a proof-of-concept for playing tabletop role-playing games with Microsoft Surface, SurfaceScapes provides a set of features designed to immerse both game masters and players with virtual representations of their game environments and characters.
"We are taking traditional tabletop role-playing games to the next level, adding a new layer of immersive and intuitive gaming to the Microsoft Surface Table and assisting both GMs and players in enjoying exciting and engaging adventures," says the CMU group.

There is a second article on the subject that goes into more detail, and features a video showing a bit of actual tabletop gameplay and also some interviews with the team.
More information.

If only they had this when I was a kid….