The demo was indeed from a couple of years ago. Jeff Han (the man behind the whole thing) actually started a company that leads in this area-

You need to see the video there, and watch (with unbiased eyes) the one from Youtube. Irrespective- Microsoft have taken a technology that lots of folks have been working on and given it their usual commercial spin. Nothing necesarily wrong with that, it's just that I wouldn't expect anything exciting from this for several years- if not more. It has interface re-design application (of course it does) but no more than an iPhone or Tablet PC OS does right now. And they are a lot more precise (tablet PCs that is). If you are a graphics designer or work with imaging a lot (apart from home dabbling) then this kind of interfacing needs to get a hell of a lot more precise and useful than flipping cards around a screen and moving things with two hands.

It seems to me that the main applications here are found in the MS videos (which are pretty cool by themselves with a nicely designed web site to show it all off). Restaurants, small kiosks, photo booths, and perhaps casinos (who all can afford the extortionate price). Of course, running Windows :?

And as I mentioned, the new push by MS into credit card transaction changes.

Anyway, we will have to agree to disagree on the source of this one and enjoy the journey.