Seen first at Microsoft TechForum 2012, IllumiShare enables remote people to share any physical or digital object on any surface. It is a low-cost, peripheral device that looks like a desk lamp, and just like a lamp lights up a surface at which it is pointed, IllumiShare shares a surface.
Microsoft IllumiShare uses a camera-projector pair where the camera captures video of the local workspace and sends it to the remote space and the projector projects video of the remote workspace onto the local space.
The IllumiShare is a virtual workspace system that looks like a simple desk lamp. It actually consists of both a camera and projector to simultaneously capture and project video. The challenge is for it to be able to differentiate between that which it has projected versus that which is physically present so that it does not re-project visuals in an infinite loop.
With IllumiShare, people can sketch together using real ink and paper, remote meeting attendees can interact with conference room whiteboards, and children can have remote play dates in which they play with real toys.
Via : Youtube
For details, see action of Microsoft Illumishare Projector Features in video below :